Time sheets are used in many industries to keep track of time worked by each employee. The time reported on these sheets is added up and multiplied against an employee's hourly wage to determine his income for a specified pay period. Time sheets can be physical paper forms or electronic records. All time sheets have a space for an employee's identifying information and "time-in"/"time-out" columns.
Acquire the time sheet or sheets to be calculated. If you will be adding up multiple employee time sheets, request completed time sheets from all employees.
Check to make sure that all relevant time is entered on each time sheet. If time records are missing, illegible or recorded improperly, contact the employee who filled in the time sheet for clarification.
Calculate time worked for each day. Most time sheets have separate columns for recording when an employee began working and when work was completed for each day. These are otherwise known as "time-in"/"time-out" columns and will probably be labeled on the time sheet as such. Total up the time worked for each day and write it at the end of the row for that date. For example, if an employee began work on March 1 at 8 a.m., took a lunch break from 12 to 1 p.m. and stopped working at 5 p.m., you would write down "eight hours worked" for March 1.
Add up the totals for each day in the pay period. The total number of hours worked in a pay period will determine how much income that employee is entitled to. Once you have added up the totals for each day in the pay period, write the sum at the bottom of the time sheet and label it "Total Hours Worked."
Calculate gross employee income for the pay period. Multiply the "Total Hours Worked" for the pay period by the employee's pay rate. For example, if an employee worked 40 hours during the pay period and has a pay rate of $10 per hour, her gross income for the pay period would be $400.
Gross income is income before taxes. Net income is the amount that an employee takes home after taxes. In order to calculate net income, you must multiply the tax rate by your gross income and then subtract that number from your gross income total. Most, if not all, employees are subject to federal, state and local taxes--all of which implicate different tax percentages.