Size DOESN'T Matter, Case #2

How else might you be overpaying employees by not accurately tracking time? Human error - the simple math errors employees make when accounting for their work times. American Payroll Association estimates the average error rate on manual time cards to be between and 2 and 8%. A modest error rate of 2% for 4 employees paid $10/hr costs you $128/mo. But, you may ask, if they are simple math errors, aren't the errors just as likely to favor the employer as the employee? Not according to the APA. The majority of errors in manual timekeeping favors the employee.

A reliable automated timekeeper eliminates errors at minimal cost.

Size DOESN'T Matter, Case #1

A popular myth around automated timekeeping is the one that says if you only have 3 or 4 employees, you don't need a timekeeping system. Maybe you don't need one, but why not be sure? Take a look at the potential savings vs the cost.

Any employer who doesn't accurately track work hours is probably overpaying. One factor is wasted labor minutes - extended breaks, overestimated work times, and more. Sure, it's just a few minutes here and there, but consider this: Four employees wasting 5 minutes a day, at $10/hour costs you $77 a month. That may not seem like much, but why pay for what you don't get? That's like buying coffee at a deli and telling the cashier to charge you for a bagel too. It just doesn't make sense.

Considering Independent Contractors

Employers faced with cost reduction and/or downsizing may find help using independent contractors rather than carrying employees on their payroll. They reduce their tax and benefit liabilities by using contractors legally and effectively. Before taking this tack, it's important to educate yourself. The IRS and DOL have regulations they are famous for sticking to! Don't get on their radar by making questionable employee classifications. Here are two excellent resources to get you started:

Help from SCORE

Contractor vs Employee

MyTimeCards accurately tracks classification and employee or contractor hours by job and client.

Plugging the Cash Leaks: Case #3

Automation - The Best Plumber's Helper

CASE # 3 - Manual Time Card Preparation

The average payroll clerk spends 7 minutes per timecard each pay period:

• Preparing and handling timecards


• Computing timecard totals


• Verifying timecard totals


• Computing shift and department totals


• Reconstructing lost or damaged timecards

The Cost: Preparing 100 timecards will take an estimated 11.67 hours to complete. Therefore, at an average clerical wage of $15.00 per hour, timecard preparation would cost $175.05 per pay period.

Automation cuts timecard handling down to seconds saving ANOTHER $170 per pay period – that’s $680 if you pay weekly!