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, which is an online Time and Attendance software that eliminates human error by automatically calculating data for the payroll.  The price of a Midex Time Control solution provides a great return on investment!

Table below outlines how much company losing every week.  Simply cross reference number of employees in your company with 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

To estimate how much return on investment a Time and Attendance software can bring to your company, see our full ROI Calculator.