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how do you determine the employeeamp;#39;s total hours worked for non-exempt employees employees should utilize the time sheets or any other records to calculate the actual hours that should also include the hours the employee was on any form of paid time off and then for exempt employees to the extent that there are records obviously the total hours worked would be counted based on the records that you may have on the exempt employees and to the extent that you donamp;#39;t have records on exempt employees which is probably generally the case employers can use a proxy formula which means that calculating each exempt employees total hours work by multiplying the total number of days actually worked during the year so this reporting period weamp;#39;re talking about the year 2022 plus the total number of days on any form of paid leave vacation time by the average number of hours worked per day by the employee