declare @timesheet table ([date] datetime, EmpNumber int, Hours decimal(4,2))
insert into @timesheet
	select '20050522',123, '7.5' union
	select '20050523',123, '8' union
	select '20050524',123, '8.5' union
	select '20050522',246, '9' union
	select '20050523',246, '6.5' union
	select '20050524',246, '7.5' union
	select '20050522',345, '8' union
	select '20050523',345, '7' union
	select '20050524',345, '6.75'

select 	d.payPeriod,
	d.empNumber,
	sum(d.hours) as totalHours
from (
	select 	empNumber,
		[date] - (datepart(dw,[date])-1) as payPeriod,
		datepart(ww,[date]) + 1 - datepart(ww,dateadd(dd,-(datepart(dd,[date])-1),[date])) as weekOfMonth,
		hours
	from @timesheet) as d
group by d.empNumber, d.payPeriod