You'll need to format the In/Out cells as Time. Data entry is simple: '1:30 p' or '1 p' is translated into the proper format.
The daily totals and weekly TOTAL columns should be formulae. In the live version, you should protect these from data entry. I've done many revisions, including sheets for California overtime laws...having one formula messed up is quite costly in time, money, and good faith between employee and employer.