Avoid Payroll Errors | Install Biometric Access

Nov 30, 2024 | Contraserv News

read time:

Install Biometric Access Control & Avoid Payroll Errors

Don’t get blindsided come payday. Avoid costly payroll errors.

Let biometric access control systems deliver accurate clocking data to your payroll software for instant viewing.

Be confident in your clocking totals

Avoid the month-end rush

on wage payments and tax declarations.

 

Rely on Biometric Data & Expert Payroll Partners | Contraserv | South Africa

Small businesses can rely on Contraserv and partners for exact biometric data and expert payroll support – avoid payroll errors.

Whether you own a small law firm in Phoenix or a medium textile manufacturer in Hammarsdale, we can help you. Based in Durban, Contraserv’s group services provide KwaZulu-Natal business’s turnkey solutions;

from clocking capture to reconciliation submission

we are accredited

to take care of your business payroll.

 

Cloud-based Payroll & Biometric Access Devices

Biometric access control devices and cloud-based payroll software are investments in precision payroll management for any South African business.

 

Contraserv & CTSTime Deliver Precision Payroll Systems

Our partners, CTSTime, are trusted time and attendance hardware suppliers. The Contraserv team are experts in payroll software integration. Together we offer comprehensive payroll support.

Your veritable one-stop shop! At Contraserv, we handle all your business payroll needs.

 

How Does Biometric Access Control Help Small Business Avoid Payroll Errors?

Biometric clocking and payroll systems collect accurate data, identify trends, and facilitate proactive management.

Why Are Payroll Errors So Costly?

Even in small enterprises, or perhaps more so, payroll errors come at a hefty price tag.

Gross margins are tight enough without

spending precious resources on

excess overtime pay and pricey tax penalties.

Mistakes on monthly employer declarations add up come annual EMP501 deadlines and attract fearsome fines; Fixing errors and resubmitting to SARS is time consuming.

 

Excess Overtime Eating Away at Your Profit Margins?

Just for a moment, consider what an unauthorised absent employee costs your business –

Undetected?

Lost production hours, replacement staff fees,

and unnecessary overtime

– costs quickly snowball, eating away at your profit and increasing staff burnout risk.

 

Contraserv’s Payroll Systems Save You Money Come Payday

Rest assured, the Contraserv group’s biometric clocking data and cloud-based payroll solutions prevent costly payroll errors – so you can enjoy your festive season in full.

 

3 Ways Biometric Access Helps You Avoid Payroll Errors

Adopting biometric access control will make a material difference to your bottom line – in a good way.

If you avoid payroll errors, you eliminate excess payroll expense and ensure payroll compliance and efficient payroll processing.

Our customers see a sustained return on investment long after recouping the initial system outlay.

 

1. Biometric Access Protects Against Excess Payroll Expense

Biometric facial recognition and fingerprint readers offer a robust defence against time-fraud.

Is overtime getting out of hand? You are not alone.

Stats SA’s labour force survey recently revealed that overtime pay increased by 4.2%, from R27.5 billion in March 2024 to R28.7 billion in June 2024. That is R1.2 billion in just three months! Compared to the year-on-year (June 2023-June 2024) increase of R1.8 billion (6.9%), it is a staggering quarterly bump.

Business Services, Construction, and Manufacturing were the industries foremost affected by overtime increases. Granted. There was an overall uptick in total employment, with KZN benefiting from 26,000 more employees, which could account for some additional overtime. But the construction industry saw an 8% decrease in employment, so the numbers don’t add up.

Our take? Overtime is trending – and it is not good!

 

Tabled Example of Uncontrolled Payroll Expenses | Excess Overtime and Time Fraud

Below is an example of the monthly costs of time fraud and excess overtime in your business.

Compare these expenses to

your investment in one biometric clocking device.

It can pay for itself in under three months.

 

Calculated Monthly Payroll Errors Vs. Biometric Device Costs | Manufacturing & Construction
Your Clothing or Construction Business
Clothing Manufacturing Company
Mobile Construction Firm
Total Number of Staff
100
50
Staff Committing Time Fraud
10 %
10 %
Normal Time Lost
1hr weekly / worker
3hr weekly / worker
Excess Overtime Paid
4hr weekly / worker
6hr weekly / worker
Average Hourly Staff Wage
R28
R28
Monthly Payroll Error Costs
R8,493
R7,280
Biometric Device Investment
R21,761 (Biostation A2)
R20,376 (ZK Horus H1)

Disclaimer: The above figures are for illustrative purposes only. Calculated payroll costs are based on minimum wage. We made assumptions regarding estimated time fraud in your business sector.

 

Eliminate Manufactured Overtime

In large factory settings, a few minutes extra off-shift for staff teatime may not break the bank. But manufactured overtime will.

Biometric attendance systems track time spent on jobs and identify employee trends.

Missed target production means

extra overtime on the weekend.

Construction crews can easily commit time fraud. Especially when multiple projects keep contractors on the move.

No need to monitor meal-breaks in person; biometric access control prevents on-site buddy punching and time theft. Protect your wage bill from excess bloat and invest in biometric clocking solutions.

Are you curious about additional ways biometrics keep South African wage bills in check?

 

2. Biometric Control Enables Payroll Compliance

Face scanning biometric control provides accurate and instant attendance data for payroll calculations.

Do you panic come payday trying to figure out leave pay? Or submit your annual EMP501 declaration only to realise you uploaded the wrong file to SARS.

Failure to square PAYE contributions with reconciliation figures at minimum triggers SARS administrative penalties. At worst, you could go to prison!

Inaccurate payroll data and

reconciliation mistakes go hand-in-hand.

Delegating payroll management to a specialist ensures payroll reporting compliance. Contraserv has over 30 years of experience in South African tax law and keeps your payroll system current on reporting regulations.

 

Tabled Example of Monthly Payroll Errors | Undocumented Leave

Shown below are calculated examples of undocumented leave costs for Business Services sectors.

 

Calculated Monthly Payroll Errors Vs. Biometric Device Costs | Professional Business Services
Your Professional Business Service
Legal Consulting Firm
Health & Wellness Clinic
Total Number of Staff
10
25
Staff Committing Time Fraud
10 %
10 %
Unauthorised Leave Per Employee
3 hr weekly
2hr weekly
Average Hourly Staff Wage
R200
R100
Monthly Payroll Error Costs
R2,600
R2,600
Biometric Device Investment
R5,196 (Hikvision DS-341)
R4,775 (ZK MultiBio 600)

Disclaimer: The above figures are for illustrative purposes only. Calculated payroll costs are based on average junior paralegal and entry-level personal trainer salaries. We made assumptions regarding estimated time fraud in your business sector.

Salaried employees can also be tricky to manage, and payroll mistakes are magnified due to higher pay brackets.

In small enterprises, failing to document staff time off is not uncommon. Family-run law firms can make attendance record keeping complicated. Do you deny your junior paralegal an unscheduled day off for wedding preparations?

What if she’s your favourite niece? And is it considered paid leave?

 

Automate Leave Management

With a facial biometric device, leave management is automated and accurate attendance records are maintained.

Consider biometric clocking systems

and comprehensive cloud-based payroll support;

outsource to experts and avoid costly payroll errors.

 A trainer perpetually arriving late costs your clinic money. Missing a new-client fitness assessment appointment can harm your reputation and result in lost business. Better to rely on contactless face biometric scanners and payroll software to detect tardiness trends.

 

Let Contraserv take care of your payroll needs;

We safeguard employee data.

 

Read more about budget-friendly biometric devices for SA business.

 

3. Efficient Payroll Processing | Biometrics Means More Time to Braai!

Implementing biometric access makes payroll processing efficient and stress-free.

Employers are particularly stress-prone at financial year-end, and the festive season compounds deadline pressures. Aside from the necessary fiscal responsibilities, owners need time to review business performance and plan ahead.

It is no wonder that employer burnout is heightened over December.

Contraserv prioritises your mental health. Work Smarter, Not Harder is an informative read for employers and dispels the myth that multitasking results in peak performance. Outsourcing payroll management to experts frees up time for Schisanyama.

After all, business owners are people too!

Enjoying the holidays with loved ones is what life is about – ons gaan nou lekka braai!

 

Tabled Example Payroll Error Calculation | Payroll Errors Vs. Biometric Device Cost

But before you swap your suit for flip-flops or load up your plate with boerewors.

Peruse the Payroll Error Calculation Breakdown below, where example totals are briefly explained.

 

Payroll Error Calculation Breakdown Vs. Biometric Device Cost | Contraserv
Calculated Payroll Error Calculation Breakdown
Clothing Manufacturing Company
Total Number of Staff
100
Staff Committing Time Fraud
10 %
Normal Time Lost
1hr weekly / worker
Excess Overtime Paid
4hr weekly / worker
Average Hourly Staff Wage
R28
Number of Staff Abusing Time
10
Total Weekly Normal Time Lost
10 hours = R280
Total Weekly Overtime Excess
40 hours = R1,680
Total Value of Weekly Time Fraud
R1,960
Biometric Device Investment
R21,761 (Suprema Biostation A2)
Monthly Payroll Error Costs
R8,493
Return on Investment Within
80 days

Disclaimer: The above figures are for illustrative purposes only. We made assumptions regarding wages and estimated time fraud in your business sector. A three-month return on investment is an estimate and excludes installation fees. Contact Contraserv for a comprehensive quote.

 

Make Business Purpose Your Focus | Biometrics Controls Payroll

To capitalise on a clear business purpose requires profit margin analysis beyond cost-cutting aims. Rather than downsize your workforce, employ the power of technology to manage your payroll and maximise workforce capability.

Innovative Technology for Smart Payroll Systems

Biometric clocking and payroll software provide insight into your wage bill. Cloud-based computing recognises trends and allows proactive management.

 Bottom line –

wage saving biometric technology allows you to work smarter

freeing up time for family and friends.

 

Contact Contraserv. Our consultants will tailor a biometric clocking and payroll software solution that suits your business needs.

You can rely on Contraserv

Your payroll is safe in our hands