The Cost of Buddy Punching and Time Theft on Your Business

Did you know, the American Payroll Association estimates that:

  • Over 75% of companies lose money from buddy punching.
  • Employees reported stealing roughly 4.5 hrs/week – the equivalent of 6 weeks vacation!
  • In total, buddy punching accounts for approximately 2.2% of gross payrolls.

Let’s calculate your potential savings with TimeCom!

Step 1: Input Your Data.

  • Number of Employees
    • Enter the total number of employees in your business.
  • Hourly Rate
    • Input the average hourly wage paid to your employees.
  • Average Hours Worked
    • Enter the total number of hours per employee per week.
  • Estimated Percentage of Buddy Punching / Time theft
    • Estimate the percentage of total hours you believe are lost to buddy punching or time theft each month.
    • Choose from 1% to 8%, representing the typical range of impact buddy punching might have on your business.

Step 2: Your Potential Savings

  • The calculator will automatically calculate the annual cost of buddy punching or time-theft based on your data entry. Your potential savings are calculated in the summary section.
[wpcode id="21075"]

Get Rid of Time Theft Troubles 

Time theft occurs when employees are paid for time they have not worked. Time theft occurs when: 

  • Employees clock in earlier or clock out later than their actual work hours. 
  • Workers extend paid break time by clocking in or out outside the allowed time. 
  • Workers “shorten” an unpaid break by clocking in or out at the wrong times, despite staying on break for the allotted time. 
  • Colleagues engage in “buddy punching,” where one employee clocks in or out for another who is not present. 
  • Employees inflate their hours on timesheets when self-reporting hours worked.

The impact of time theft on the business can be significant: 

  • Financial Loss: Companies pay for unworked hours, directly affecting their bottom line.  
  • Reduced Productivity: Time theft often results in less work being completed during paid hours.  
  • Unfair Work Distribution: Honest employees may end up shouldering more responsibilities, creating resentment and a poor work environment. 
  • Increased Administrative Costs: Company resources are spent reviewing attendance and payroll records to identify and resolve cases of time theft. 

“Disclaimer: Time-Theft Calculator Results:  The results provided by this online time-theft calculator are intended for informational purposes only. These calculations offer an estimate of potential time-theft impact on payroll based on the data input. However, it is important to note that:

  • The results are not a guarantee of actual savings or losses.
  • Real-world scenarios may differ significantly due to various factors not accounted for in this simplified calculation.
  • This tool should not be used as the sole basis for making business decisions or implementing policy changes.
  • For accurate assessment and actionable insights, we strongly recommend consulting with professional time and attendance management experts or conducting a thorough internal audit.

By using this calculator, you acknowledge that the results are approximate and for informational purposes only, and should be used only as a general guide. Accu-Time Systems, Inc. is not responsible for any decisions or actions taken based on the information provided by this tool.