Modified your code.
Declare @Temp Table(EmpId Integer, Project VarChar(10), PunchIn SmallDateTime, Punchout SmallDateTime)
Insert Into @Temp Values(1,'A','09:00:00','10:30:00')
Insert Into @Temp Values(1,'B','10:32:00',NULL)
Insert Into @Temp Values(1,'C','11:35:00','13:00:00')
Insert Into...