Plugging the Cash Leaks: Case #2

Automation - The Best Plumber's Helper

CASE # 2 – Human Error

The American Payroll Association estimates that the rate of human error in timecard preparation is between 1% and 8%.

Your overpayment: 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.

Automation eliminates errors saving you an additional $240 per pay period – that’s approximately $950 per month, if you pay weekly!

Plugging the Cash Leaks: Case #1

Automation - The Best Plumber's Helper

CASE # 1 - Wasted Labor Minutes

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?

Your overpayment: If your average pay rate is $10.00 per hour, then you pay an extra $230.00 each month for time not worked.

The right automated timekeeper tracks worked time as closely as a fraction of a minute. At a cost of $5 per employee per month, it saves you $155 per month for 15 employees.

Busting the No-Time-Clock-for-Salaried-Workers Myth

Say you have used the Exemption Test in the previous post and find that you do indeed have employees not covered by FLSA wage and hour regulations. Does that mean you don't need to track their hours worked? Absolutely not! There are many reasons an employer, and salaried employee, can benefit from using an automated timeclock:

• quickly and accurately maintain paid time-off balances
  
• track hours given to specfic projects, departments or budget lines
  
• monitor employee performance, so accurate documentation exists if attendance, late arrival or extended lunch issues arise
  
• have instant access to total hours available for FMLA and other leave
  
• Learn more...
  

Exempt and Punching a Clock

MyTimeCards has fast, accurate reports so you and your employees know how the hours add up.

Classify Carefully, You'll Be Glad You Did

In their whitepaper, "Total Wage and Hour Compliance: An Initiative to End the Wage and Hour Class Action War", labor law experts Littler Mendelson, P.C., note that employers are ever more the targets of wage and hour litigation. In the six month period from October 2007 to March 2008, over 75% of the class action employment law suits filed nationwide were wage and hour related: 1257 out of 1655 cases.

Protect yourself and your employees by declaring exempt and non-exempt classifications carefully. For the best results, consult a labor attorney. To read up on your own, try the following links.

Some DOL Exemptions

What About Your Drivers?

What If You Were Wrong?

MyTimeCards ensures the proper rate of pay matches each employee's classification.