The American Payroll Association estimates that the rate of human error in time card preparation is between 1% and 8%..
The Cost: Therefore, a conservative 2% human error rate on a $12,000 payroll would equal $240.00 in erroneous wages paid per pay period. Moreover, the cost to re-issue correct payroll amounts (if the error is detected and reported) further increases your cost of human error.
The average payroll clerk spends 7 minutes per time card each pay period:
The Cost: Preparing 100 time cards will take an estimated 11.67 hours to complete. At an average clerical wage of $15.00 per hour, time card preparation would cost $175.05 per pay period.
Did you know that just 15 employees receiving pay for merely 4 minutes of “wasted” time per day [untracked breaks,extended lunches, over-approximated punch times, etc. ] will total 1380 minutes [23 hours] of additional pay per month?
The Cost: If your average pay rate is $10.00 per hour, then you pay an extra $230.00 each month for labor worked.