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COST JUSTIFICATION
Five
Minutes that Costs THOU$AND$
According to
studies by the Robert Half Agency, time lost to employee tardiness,
early departure, and long lunch breaks, exceeds on average over 20
minutes per day, per employee.
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This
example is based on just 5 minutes per day.
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| |
Number of
Employees
|
| Avg.
Hourly Rate |
25 |
50 |
100 |
| $
5.25 |
$5,312.00 |
$10,625.00 |
$21,250.00 |
| $
7.00 |
$7,437.00 |
$14,875.00 |
$29,750.00 |
| $10.00 |
$9,562.00 |
$19,125.00 |
$38,250.00 |
Formula:
(number of employees) X (255 working days per year)
X (average hourly rate, with an overhead cost taken equal to
hourly rate)
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Manual
Calculations Cost Time and Money
The
American Payroll Association experts claim it takes, on
average,
5 minutes to add and audit one employee's time card.
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|
Could
you spend
your time more
profitably?
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Number
of
Employees |
Hours
to
compute |
Annual
Cost
@ $9.50
per hour |
| |
25 |
54 |
$513.00 |
| |
50 |
108 |
$1026.00 |
| |
100 |
216 |
$2052.00 |
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Formula:
(number of employees) X (5 minutes) X (26 pay periods
per year)
divided by (60 minutes/hr.) X (payroll clerk's hourly
rate.)
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The
Human Error Factor
Computations
errors can occur in many ways. Simple key entry errors,
transposing of numbers, and miss-reading handwritten
records combine to make for costly mistakes. Employees
will invariably let the employer know when their check
comes up short.
The American Payroll Association experts claim the rate
of manual time card computation error to be at least 1
percent and up to 8 percent of your annual payroll.
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Who's
looking
out for you!
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This
example based on just a 1% error factor
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Number
of Employees |
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Average
Hourly Rate
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©25 |
50 |
100 |
|
$5.25 |
$2,730.00 |
$5,460.00 |
$10,920.00 |
|
$7.00 |
$3,540.00 |
$7,280.00 |
$14,560.00 |
|
$10.00 |
$5,200.00 |
$10,400.00 |
$20,800.00 |
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Formula:
(number of employees) X (40 hours per week) X (52 weeks
per year)
X (average hourly rate) X (1 percent error factor.)
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TIME IS
MONEY!
We hope these
help you cost justify a solution!
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