1. What is Average Handling Time (AHT) for Payroll?

Average Handling Time (AHT) for payroll measures the average time taken to process payroll per period. It helps organizations understand the efficiency of their payroll processing operations and identify areas for improvement.

2. How Does the Calculator Work?

The calculator uses the AHT formula:

Where:

• \( Total\ Time \) — Total hours spent on payroll processing
• \( Payroll\ Period \) — Number of payroll periods processed

Explanation: The formula calculates the average time required to process each payroll period by dividing the total processing time by the number of periods.

3. Importance of AHT Calculation

Details: Monitoring AHT helps organizations optimize payroll processes, allocate resources efficiently, reduce operational costs, and improve overall payroll management efficiency.

4. Using the Calculator

Tips: Enter total time in hours and number of payroll periods. Both values must be positive numbers (total time > 0, payroll periods ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good AHT for payroll processing?
A: A good AHT varies by organization size and complexity, but typically ranges from 1-4 hours per payroll period for standard processing.

Q2: How can we reduce our payroll AHT?
A: Implement automation, streamline processes, provide staff training, and use integrated payroll systems to reduce manual work and errors.

Q3: Should overtime hours be included in total time calculation?
A: Yes, all hours spent on payroll processing, including regular and overtime hours, should be included for accurate AHT calculation.

Q4: How often should AHT be measured?
A: AHT should be measured regularly (monthly or quarterly) to track performance trends and identify processing efficiency changes.

Q5: Does AHT include time spent on payroll corrections and adjustments?
A: Yes, for comprehensive measurement, include all time spent on payroll-related activities, including corrections, adjustments, and reporting.