---
title: Tracking employee time can really add up
description: The PPACA mandates that employees with more than 30 average hours per week be deemed full time for the purposes of health coverage. 
---

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## [Tracking employee time can really add up](https://info.bcnservices.com/tracking-employee-time-can-really-add)

April 25, 2013

Managing employee time is an essential part of most businesses, from retail to manufacturing to professional.  The [Patient Protection and Affordable Care Act](https://www.healthcare.gov/glossary/patient-protection-and-affordable-care-act/) (PPACA),  or Obamacare, has put new focus on employer calculations of time, in order to calculate the status of their workforce.  Here is a real-world example:

The PPACA mandates that employees with more than 30 average hours per week (based on a calculated look back period average of between 90 days and one year) be deemed full time for the purposes of health coverage.   This company’s cost will be a minimum of $2,000 (tax) up to the cost of family health insurance for this employee ($15,000)

A more global tracking issue that affects costs for all employees in your company is simply the LOSS of time due to inadequate data collection.  The Return on Investment (ROI) of investing in current technology and data capture is well documented in human error, auditing, and lost time.

In the following example, bad timekeeping costs this 50-member employee group more than $21,000 per year, or $439 per employee per year. This shows the effects of an inadequate data collection system\*:

|   | **Human Error Factor Savings- A** |   |
| --- | --- | --- |
| A |      Number of Employees | 50 |
| B |      Average hourly rate | $10 |
| C |      Average hours worked per week | 38 |
| D |      Total weekly payroll (A x B x C =D) | $19,000 |
| E |      Human error factor | 0.25% |
|   |      Total weekly savings (D x E) | $48 |

 

|   | **Auditing Savings- B** |   |
| --- | --- | --- |
| A |      Number of Employees | 50 |
| B |      Minutes saved per card | 6 |
| C |      Total pay period minutes saved (A x B=C) | 300 |
|   |      Total pay period hours saved (C/60) | 5 |
|   |      Hourly rate for Department Heads | $25 |
|   |      Weekly Department Head savings | $125 |

 

|   | **Lost Time Savings- C** |   |
| --- | --- | --- |
| A |      Lost productivity per day | 0.1 |
| B |      Avg. employee’s rate/hour | $10 |
| C |      Avg. wages overpaid/day/emp (A x B= C) | 1 |
| D |      Avg. wages overpaid/wk/emp (C x 5) | 5 |
| E |      Total number of employees | 50 |
|   |      Total wages overpaid/wk (D x E) | $250 |

 

|   | **Summary** |   |
| --- | --- | --- |
| A |      Human error savings (F1) | $48 |
| B |      Audit savings (F2) | $125 |
| C |      Lost time savings (F3) | $250 |
| D |      Total weekly savings (A + B + C) | $423 |
|   |   **Total annual savings (D x 52)** | **$21,970** |
|   |   **Savings/worksite employee** | **$439** |

\*Studies conducted annually by national payroll and staffing associations

BCN works closely with its clients to create efficient, cost-effective data capture of employee time, which gives clients greater control of scheduling and time management.  Call us at (800) 891-9911 for further information about tracking your employees’ time.  Or [contact us here.](https://www.bcnservices.com/contact-us/)

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