This tool is intended to provide some indicative cost savings achievable by implementing a T&A system. The exact amount saved will vary from one organisation to another as well as from one period to another.

All values are rounded to 2 decimal places. Calculations are always performed on the displayed values.

##### Executive Summary

- Total Gross Annual Saving: This is a total of the savings made in the Total lost labour per year, the Average Payroll staff cost per year and the Total sickness per year.
- Total Cost of T&A System: The monthly quoted price for the Stanley T&A system multiplied by 12.
- Total Net Saving (ROI): The Total Gross Annual Saving minus the Total Cost of T&A System.

##### Lost Labour Time

- The number of working days in a year is calculated as 233.35. This is based on employees working 5 days/week and having 8 public holidays and 20 days of annual leave entitlement and also taking into account leap years. The working days value been used in calculations to make the calculations more accurate and fair.
- Total lost labour per working day: This is the total time lost due to employees arriving late, leaving early or taking too much break time. The minutes/hours are calculated by multiplying the number of employees by the average lost minutes/employee/day. The cost is calculated by multiplying the Decimal Hours figure by the average hourly rate for the employees after factoring in 10.4% of employer's NI contributions.
- Total lost labour per week: The number of working weeks takes into account public holidays and annual holidays. The number of calendar weeks in a year varies depending upon the weekday of the 1st of January and whether the year is a leap year. The calculations used by this tool use the average, which is 52.177 calendar weeks per year. The minutes/hours are calculated by multiplying the number of employees by the average lost minutes/employee/week. The cost is calculated by multiplying the Decimal Hours figure by the average hourly rate for the employees after factoring in 10.4% of employer's NI contributions.
- Total lost labour per month: This is the total number of working days (see above) divided by 12. The minutes/hours calculated by multiplying the number of employees by the average lost minutes/employee/year. The cost is calculated by multiplying the Decimal Hours figure by the average hourly rate for the employees after factoring in 10.4% of employer's NI contributions.

##### Payroll Costs

- Annual gross payroll for all employees. This is the hourly rate multiplied by the average hourly rate multiplied by the average number of hours employees work each week multiplied by the number of weeks in the year (52.177, see earlier explanation.). It also factors in 10.4% employer's NI contributions.
- Payroll cost per run: This is the labour cost of producing each payroll run. The Current Costs are calculated by multiplying the Payroll administration hours value by the average hourly rate for Payroll staff then factoring in the 10.4% employer's NI contributions. The Estimated Costs Using T&A System is based on a time saving of 95% compared to the manual system. The Saving With T&A System is simply the Current Costs minus the Estimated T&A Costs.
- Average Payroll staff costs per year: These figures are based on the Payroll costs per run multiplied by the number of payroll runs in a year. This will depend on the value specified in "How often do you run payroll?"

##### Sickness

- The number of working days in a year is calculated as 233.35. This is based on employees working 5 days/week and having 8 public holidays and 20 days of annual leave entitlement and also taking into account leap years. The working days value been used in calculations to make the calculations more accurate and fair.
- Total sickness per working day: This is the total sickness time (on average) of all employee sickness per working day. The minutes/hours are calculated by multiplying the number of employees by the average sickness days by the average daily hours and dividing the result by the number of working days in the year. The cost is calculated by multiplying the Decimal Hours figure by the average hourly rate for the employees after factoring in 10.4% of employer's NI contributions.
- Total sickness per week: The number of working weeks takes into account public holidays and annual holidays. The number of calendar weeks in a year varies depending upon the weekday of the 1st of January and whether the year is a leap year. The calculations used by this tool use the average, which is 52.177 calendar weeks per year. The minutes/hours are calculated by multiplying the number of employees by the average sickness per employee per week. The cost is calculated by multiplying the Decimal Hours figure by the average hourly rate for the employees after factoring in 10.4% of employer's NI contributions.
- Total sickness month: This is the total number of working days (see above) divided by 12. The minutes/hours calculated by multiplying the number of employees by the average sickness/employee/year. The cost is calculated by multiplying the Decimal Hours figure by the average hourly rate for the employees after factoring in 10.4% of employer's NI contributions.