Home > PayPunch, Uncategorized > PayPunch ROI

PayPunch ROI

Payroll ImageA study published in the ”PayTech” American Payroll Association’s magazine, reports that:

  • Human error associated with manual calculation of payroll costs employers between 1% and 8% of the gross payroll
  • Manual time card calculation takes about 7 minutes per card
  • “Buddy-punching” accounts for up to 5% of the gross payroll

According to the results of annual surveys, on average 4 hours and 18 minutes a week is lost per employee by them coming late, buddy-punching, goofing off, long lunches and breaks and leaving few minutes late to get overtime.

These factors results may surprisingly represent a large portion of the manual timekeeping costs.

Let’s calculate how much average company spends on payroll processing:

   Typical Company 100 employees  
Time spent verifying employees hours: 2 min average per employee
/ 60 minutes in 1 hour
x 100 employees
x $20.00 per hour supervisor salary= $66.70
Time spent manually calculating employees hours: 2 min average per employee
/ 60 minutes in 1 hour
x 100 employees
x $20.00 per hour supervisor salary= $66.70
Time spent manually entering employees hours: 2 min average per employee
/ 60 minutes in 1 hour
x 100 employees
x $20.00 per hour supervisor salary= $66.70
Cost of paper timecards: $0.07 per time card
x 100 employees=$7.00
Mistakes in calculating work hours and other human errors: 40 hour week
x $10.00 average employee pay
x 100 employees
x 4.5% average calculation error= $1,800.00
Time, “unaccounted for”: 4.3 average number of lost hours per employee per week
x $10.00 average employee pay
x 100 employees= $4,300.00
Total current unnecessary spending on payroll processing per week: $6,307.00
Total current unnecessary spending on payroll processing per year: $327,964.80

What would you rather do with your money?

About these ads
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 311 other followers

%d bloggers like this: