1
Paid hours versus elapsed shift time
A payroll hours calculator does more than subtract start time from end time. Paid hours can differ from raw elapsed shift time because unpaid breaks, meal periods, overtime thresholds, and overnight shifts all affect the final compensable result. This is why payroll and scheduling systems usually convert everything into minutes or seconds before computing the final decimal-hour total.
The distinction is essential because wage systems multiply hourly rates by decimal-hour values, not by mixed hour-minute notation. A person working 8 hours and 15 minutes is paid for 8.25 hours, not 8.15 hours.