Time and Attendance Software ROI – Human Error
The American Payroll Association (APA) conducted a study about typical human error factor when manually calculating payroll. According to the results published in Paytech (the APA’s monthly magazine), the overpayment due to human error can range from 1% to 8%.
What does it really mean? Here is an example. If a company has 100 employees, with an average hourly pay of $15, then the company is paying $1,500 per hour for all 100 employees. If every employee works 8 hours per day, 5 days per week, then the company’s payroll is $60,000 per week ($1,500/hour x 40 hours) for all employees.
If we factor in as little as 1% human error, the company is losing $600 per week or over $31,000 per year. Midex Time Control is a cloud-based Time and Attendance solution that eliminates human error by automatically calculating payroll data.
The table below outlines how much your company could be losing every week. Simply cross reference the number of employees in your company with the Human Error factor that you believe is in your company.
|
Employees |
Human Error factor (1%-8%) |
|||||||
|
1% |
2% |
3% |
4% |
5% |
6% |
7% |
8% |
|
|
25 |
$150 |
$300 |
$450 |
$600 |
$750 |
$900 |
$1,050 |
$1,200 |
|
50 |
$300 |
$600 |
$900 |
$1,200 |
$1,500 |
$1,800 |
$2,100 |
$2,400 |
|
75 |
$450 |
$900 |
$1,350 |
$1,800 |
$2,250 |
$2,700 |
$3,150 |
$3,600 |
|
100 |
$600 |
$1,200 |
$1,800 |
$2,400 |
$3,000 |
$3,600 |
$4,200 |
$4,800 |
|
125 |
$750 |
$1,500 |
$2,250 |
$3,000 |
$3,750 |
$4,500 |
$5,250 |
$6,000 |
|
150 |
$900 |
$1,800 |
$2,700 |
$3,600 |
$4,500 |
$5,400 |
$6,300 |
$7,200 |
|
175 |
$1,050 |
$2,100 |
$3,150 |
$4,200 |
$5,250 |
$6,300 |
$7,350 |
$8,400 |
|
200 |
$1,200 |
$2,400 |
$3,600 |
$4,800 |
$6,000 |
$7,200 |
$8,400 |
$9,600 |
Want to dig a bit deeper? Our ROI Calculator gives you a detailed look at the the impact that a time and attendance solution will have on your company’s bottom line.
Whether you’re a company of 10 or 10,000, Midex Time Control can help you work faster and smarter. Our time and attendance packages scale from small businesses with less than 25 employees, to our most advanced, multi-user Enterprise experience for companies with multiple locations and thousands of employees. Compare plans here.
Discover the most efficient way to simplify all your time and attendance tracking needs with a Midex Time Control no-risk, FREE 30-day trial.