Additional payroll costs are used to get a realistic overview of your actual employment costs, by factoring in payroll elements that can add to the total scheduled cost of an employee.
As an example, additional payroll costs can be used to forecast holiday accrual costs (through an additional payroll cost of 12.07%) or pension (as and additional payroll cost of 3-4%).
To get started, go to Settings > Reports > Revenue and then Additional payroll costs. Click Create and you can start to set up an additional payroll cost, as a percentage.
There are a few more details that you can configure:
- Title: name the additional payroll cost, so you can find later if needed.
- Additional payroll costs: add in the percentage you would like to inflate the rate by (the percentage you'd like to simulate the costs with).
- Wage type: choose which method of payment you would like to inflate. This can be Schedule costs, such as hourly rates (Hourly wage), Shift rates (Wage per shift), or salaries (Monthly salary).
- Employee Types: choose a specific employee type that this rule will affect.
By default, the additional payroll cost will apply to All employee types.
If you need to change that, you'll have to save your changes first and then reopen the payroll cost details page, from the ✏️ icon, to edit it.
Additional payroll costs will affect both the costs on the Schedule and in the Revenue report.
Please keep in mind, that as this inflation only takes place for scheduled costs (as a simulation), the payroll costs will not be changed by these rules.
This can be useful when checking the Revenue tab on the Schedule. Here is the Revenue tab, with both revenue and payroll costs displayed, before adding a simple 10% Additional payroll cost:
And here is the same tab, with the 10% rule attached:
As you can see, by adding the additional cost, a schedule that looks under budget would come in over budget, when the scheduled costs more accurately represent the true cost of employment.