TeleTimecard Savings Example
Scenario: A non-medical company employs 25 part-time caregivers. Each caregiver works 30 hours a week at an average wage of $8.00 per hour. A staff member at the company is responsible for
calculating each timecard manually on a semi-monthly basis. This process takes approximately 10 minutes per timecard and the staff member earns an average wage of $12.00 per hour. Assume a 2% error
in payroll and 12 minutes a day lost due to caregiver tardiness, arriving late or leaving early from a shift.
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 |
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| 1. |
The cost of manually calculating timecards per pay period. |
|
25 caregivers x $12.00 per hour x 10 minutes per timecard |
= $3000.00 |
|
60 minutes in an hour |
÷ 60 |
|
= $50.00 |
|
| 2. |
The cost of payroll errors per pay period. |
|
25 caregivers x $8.00 per hour x 60 hours per pay period |
= $12,000.00 |
|
2% error rate |
x .02 |
|
= $240.00 |
|
| 3. |
The cost of lost caregiver time per pay period. |
|
25 caregivers x $8.00 per hour x (12 minutes / 1 hour) |
= $40.00 |
|
2 weeks (10 days) |
x 10 |
|
= $400.00 |
|
| 4. |
Determine potential savings from totals above. |
|
$50.00 + $240.00 + $400.00 |
= $690.00 |
|
26 payroll periods (semi-monthly) |
x 26 |
|
|
Potential Annual Savings |
$17,940.00 |
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