Labor burden costs calculation during final payroll computation

How Sage 100 Contractor applies labor burden (job costs) during final payroll computation.

Labor Burden Overview

The labor burden refers to job-related payroll overhead costs that employers incur in addition to direct wages. These costs include taxes, insurance, and benefits.

Payroll Calculation Types Included in Labor Burden

• Calculation Type 2: Add to Gross
• Calculation Type 3: Employer Cost
• Calculation Type 4: Add/Deduct (taxable)

Process for Computing Labor Burden

Timecard Lines and Payroll Calculations

• Timecard lines and payroll calculations determine the burden from 5-2-2 Payroll Records

Saving and Final Computation

• You save a payroll record and select Final Computed from the 5-2-3 Compute Payroll window
• The program creates a 6-3 Job Costs record for each line with a job in the 5-2-2 Payroll Record grid

Calculation Methods

• The Calculation Method in 5-3-1 Payroll Calculation determines the calculation and application of labor burden amounts

Specific Calculation Methods

Using 11 - Per Pay Period Calculations:

• Compute a flat rate divided by hours on the timecard lines
• The total calculated amount is divided by the total number of hours on the time card
• The resulting value multiplies the hours on each line to determine the additional cost for that timecard line

Using percentage (%) calculations and calculations based on hours:

• Calculated on a per-line basis using the appropriate method

Workers' compensation calculation (Method 17 - Tables):

• The rate for each timecard line could differ, as determined by the Comp Code
• Workers' comp rates are in the 5-3-2 Workers' Compensation window
• Applies overtime as regular hours

Using 7 - % Other Calculation:

• Uses the other calculation amounts for the line to determine a percentage for the additional cost calculation.