Errors in calculating payroll are costing your business!
Use Time & Pay’s Payroll Services to Eliminate These Errors.
Calculating payroll is full of opportunity for errors, especially if you are doing it all by hand on a calculator. (Yes, believe it or not, plenty of businesses still calculate payroll on a calculator!) Even if you do some of the process on a computer, processing your payroll still may require some manual calculations, especially if you are using a manual timekeeping method.
First you have to add up hours worked, by the day and then by the week, to determine how many hours to pay your employees, including overtime and paid-time-off. You have to calculate payroll and payroll taxes. If you are manually calculating deductions, paid-time-off, garnishments, it gets more complicated. (If those deductions are pre-tax, the calculations are even trickier.) Many companies use a manual system, in Excel for example, to track paid-time-off (PTO) and accruals. All of these mathematical processes are prone to errors and those errors are costing your company money. Don’t believe us? Try this simple little exercise:
Add up the following numbers:
10 = ???
Easy, wasn’t it?
If you came up with 5000, try again!
Your total should be 4100……!
Don’t kick yourself too hard! 95% of the folks who try this exercise get it wrong. The point is, it just shows you how easy it is to make errors doing routine mathematical calculations like the ones involved in adding up hours worked and payroll!
Automate For Accuracy & Savings
The more you can automate all the aspects of the payroll process, the less it will cost your company. Extensive studies by the American Payroll Association, as well as numerous other companies throughout the country, have determined that employees will be overpaid from 1 to 8% of their annual wages due to errors in calculating hours worked and payroll. These errors, just like the one you made above, are costing your business thousands of dollars annually.
The more you can automate the payroll process, the more accurate your payroll will be calculated, the less payroll errors will cost your business. Since 1992, Time & Pay has been providing our customers with fully automated systems (such as automated time and attendance) that eliminate all the work involved in payroll processing and all the associated costly errors. Even if you fall into the 1% error range, chances are good that our services will provide you with savings that equate to well over a 100% annual return on your investment. On top of that, we’ll give you valuable tools you need to better manage your employees and your business.