Time and Attendance Software ROI – Money lost due to rounding

In the last two articles, we’ve discussed how much money company loses on Payroll due to human error and time it takes to calculate payroll.  You can read these two articles by clicking on the links bellow:

Time and Attendance Software ROI – Human Error
Time and Attendance Software ROI – Cost Calculation

In this article, I want to highlight another cost saving factor of how a Time and Attendance software gives you return on investment.  When employees start or finish a work day, they do not clock in or out at the exact moment when a shift begins or ends. For example, if an employee starts work at 9am, most likely he/she will punch in a bit earlier, maybe at 8:57am.  If the shift ends at 5pm, then that employee might punch out around 5:02pm.  At the end of the day, it is estimated that, on average, employees get paid extra 4 to 12 minutes a day.

How much this could really mean in dollars?  For example, if your company has 100 employees and everyone is getting paid for extra 4 minutes per day, you are paying for 400 extra minutes per day.  If we multiply this by 5 work days, it comes out to 2,000 minutes or 33.3 hours.  If your employees get paid on average $15 per hour, then the total cost of overpayment is $500 per week or $26,000 a year.

Table below outlines how much a company could be losing every year.  Cross reference the number of employees in your company with the number of minutes you think you might be overpaying your employees per day.

Employees

 Number of Extra Minutes Per Day

1

2

3

4

5

6

7

8

25

$1,625

$3,250

$4,875

$6,500

$8,125

$9,750

$11,375

$13,000

50

$3,250

$6,500

$9,750

$13,000

$16,250

$19,500

$22,750

$26,000

75

$4,875

$9,750

$14,625

$19,500

$24,375

$29,250

$34,125

$39,000

100

$6,500

$13,000

$19,500

$26,000

$32,500

$39,000

$45,500

$52,000

125

$8,125

$16,250

$24,375

$32,500

$40,625

$48,750

$56,875

$65,000

150

$9,750

$19,500

$29,250

$39,000

$48,750

$58,500

$68,250

$78,000

175

$11,375

$22,750

$34,125

$45,500

$56,875

$68,250

$79,625

$91,000

200

$13,000

$26,000

$39,000

$52,000

$65,000

$78,000

$91,000

$104,000

Midex Time Control, which is an online Time and Attendance software, eliminates overpayment by rounding registrations. The price of a Midex Time Control solution provides a great return on investment!  To estimate how much return on investment a Time and Attendance software can bring to your company, see our ROI Calculator.