Filter Out a Specific result from a complicated SQL statement and clean up my SQL - sql-server-2008-r2

Question

I am taking a combination of the following tables to determine, in and out time, total hours worked for the day, workcenter and associated pay rates. However, when the PunchType = '303' there is two rows, 1 for the initial workcenter as a '10' punch and then the '303' When the '303 punch exists I need to use that as the in punch instead. The below query and sample results show that I have narrowed my query down to show both the results of using the '10' punch (in) - '12' punch (out) and the '303' punch (in) if it exists to the '12' punch (out). In my final result I only want the '303' - '12' match if it exists or I will have duplicate records. All of this is being dumped in Report Builder 3.0 to calculate totals hours worked and dollars paid out per day ( no need for help there, just trying to give some context)
I have included the RowNumber in the final query results because I was thinking to use that to filter the results as needed. My thinking: if Count(RowNumber) = 2, return where RowNumber = '2', IF Count(RowNumber) = 1, return where RowNumber = '1', IF Count(RowNumber) = 4, return Where RowNumber = '3,4). In know the syntax in the phrasing here is wrong, but I am just using it to illustrate what I am trying to do. I am sure there is an easier way to write the query (though I am OK with if not) as long as I can figure out how to filter the results to only what I need. Any help is appreciated. Thanks!
Sample Data:
Timecard
| TimeCardID | StoreID | EmpID | CardDate
| PunchType | WorkCenter | BreakIndex |ShadowTimeCardForID
B6B839AD-D8DF-E611-A3E5-0019170149B6 | 32365 | 4171 |2017-01-21 07:54:00.500
| 303 | 4 |0 | 00000000-0000-0000-0000-000000000000
EmployeeRate
| EmployeeRateID | EmployeeID
| RateIndex | WorkCenter | OvertimeRate | RegularRate
| C3325A54-E7A9-E611-A16D-0019178089A7 | 27139B5C-7A74-E611-969E-3417EBD1A8D1
| 4 | 4 | 2250 |1500
Query:
DECLARE #datetime datetime = '2017-01-22 04:00:00.000'
SELECT
z.EmpID,
z.RegularRate,
z.OvertimeRate,
z.WorkCenter,
z.in_punch,
z.out_punch,
z.HoursWorked,
z.RowNumber
FROM
(SELECT
y.EmpID,
y.RegularRate,
y.OvertimeRate,
y.WorkCenter,
y.in_punch,
y.out_punch,
y.HoursWorked,
row_number() OVER(PARTITION BY EmpID ORDER BY EmpiD) AS RowNumber
FROM
(SELECT
f.EmpID,
f.RegularRate,
f.OvertimeRate,
f.WorkCenter,
f.in_punch,
f.out_punch,
f.HoursWorked
FROM
(SELECT
tc.EmpID,
er.RegularRate,
er.OvertimeRate,
tc.WorkCenter,
tc.in_punch,
tc.out_punch,
CONVERT(varchar(3),DATEDIFF(MINUTE,in_punch,out_punch)/60) + ':' +
RIGHT('0' + CONVERT(varchar(2),DATEDIFF(MINUTE,in_punch,out_punch)%60),2)
AS HoursWorked,
row_number() OVER(PARTITION BY tc.EmpID ORDER BY tc.EmpiD) AS RowNumber
FROM
(SELECT
e.EmpID,
e.WorkCenter,
e.CardDate AS in_punch,
e2.CardDate AS out_punch
FROM
(SELECT EmpID, CardDate, WorkCenter FROM TimeCard where PunchType = '10'
AND CardDate BETWEEN DATEADD(DAY, -1, #datetime) AND #datetime) e
INNER JOIN
(SELECT EmpID, CardDate, WorkCenter
FROM TimeCard where PunchType = '12' AND CardDate BETWEEN DATEADD(DAY, -1,
#datetime) AND #datetime) e2
ON
e.EmpID = e2.EmpID
) tc
INNER JOIN
[dbo].[Employee] em
ON tc.EmpID = em.EmpID
INNER JOIN
[dbo].[EmployeeRate] er
ON em.[EmployeeID] = er.[EmployeeID] AND tc.[Workcenter] = er.[WorkCenter]
WHERE tc.in_punch <= tc.out_punch
GROUP BY tc.EmpID,
er.RegularRate,
er.OvertimeRate,
tc.WorkCenter,
tc.in_punch,
tc.out_punch
) f
WHERE f.[RowNumber] <> '2'
UNION
SELECT
f.EmpID,
f.RegularRate,
f.OvertimeRate,
f.WorkCenter,
f.in_punch,
f.out_punch,
f.HoursWorked
FROM
(SELECT
tc.EmpID,
er.RegularRate,
er.OvertimeRate,
tc.WorkCenter,
tc.in_punch,
tc.out_punch,
CONVERT(varchar(3),DATEDIFF(MINUTE,in_punch,out_punch)/60) + ':' +
RIGHT('0' +
CONVERT(varchar(2),DATEDIFF(MINUTE,in_punch,out_punch)%60),2) AS
HoursWorked,
row_number() OVER(PARTITION BY tc.EmpID ORDER BY tc.EmpiD) AS RowNumber
FROM
(SELECT
e.EmpID,
e.WorkCenter,
e.CardDate AS in_punch,
e2.CardDate AS out_punch
FROM
(SELECT EmpID, CardDate, WorkCenter
FROM TimeCard where PunchType = '303' AND CardDate BETWEEN DATEADD(DAY, -1,
#datetime) AND #datetime) e
INNER JOIN
(SELECT EmpID, CardDate, WorkCenter
FROM TimeCard where PunchType = '12' AND CardDate BETWEEN DATEADD(DAY, -1,
#datetime) AND #datetime) e2
ON
e.EmpID = e2.EmpID
) tc
INNER JOIN
[dbo].[Employee] em
ON tc.EmpID = em.EmpID
INNER JOIN
[dbo].[EmployeeRate] er
ON em.[EmployeeID] = er.[EmployeeID] AND tc.[Workcenter] = er.[WorkCenter]
WHERE tc.in_punch <= tc.out_punch
GROUP BY tc.EmpID,
er.RegularRate,
er.OvertimeRate,
tc.WorkCenter,
tc.in_punch,
tc.out_punch
) f
WHERE f.[RowNumber] <> '2'
) y
) z
GROUP BY
z.EmpID,
z.RegularRate,
z.OvertimeRate,
z.WorkCenter,
z.in_punch,
z.out_punch,
z.HoursWorked,
z.RowNumber
ORDER BY COUNT(RowNumber)OVER(PARTITION BY EmpID)
Results:
EmpID,RegularRate,OvertimeRate,WorkCenter,in_punch,out_punch,HoursWorked,RowNumber
9267,1150,1725,9,2017-01-21 16:59:27.940,2017-01-22 01:16:16.200,8:17, 1
9438,550,825,3,2017-01-21 09:55:34.500,2017-01-21 15:37:51.770,5:42,1
9471,223,335,1,2017-01-21 10:32:08.060,2017-01-21 14:18:23.430,3:46,1
9471,223,335,1,2017-01-21 15:54:29.570,2017-01-21 23:00:00.000,7:06,2
4171,223,335,1,2017-01-21 07:54:00.490,2017-01-21 15:17:31.740,7:23,1
4171,1500,2250,4,2017-01-21 07:54:00.500,2017-01-21 15:17:31.740,7:23,2