Labor Burden is normally set-up to AUTOMATICALLY compute and post to JOB COST
a DOLLAR AMOUNT that represents the EMPLOYER' S PAYROLL TAX LIABILITY for the
LABOR COST that was charged to a Job and Cost Code.

Labor Burden is composed of the following Elements:

                                         1. Employer Portion of F.I.C.A. TAX

                                         2. Federal Unemployment Tax

                                         3. State Unemployment Tax

                                         4. Workman's Compensation

Some Employers have added other items to Labor Burden, but the program will AUTOMATICALLY
handle the above items. For those that have TRADITIONALLY used a PERCENTAGE application,
that option is available in the below list:

 

Methods of adding LABOR BURDEN to Job Cost.

1. AUTOMATIC application.

The above listed 4 items are computed for each Pay Run and added Automatically to Job Cost.

The PARAMETERS that cause this to happen are in the JOB CLASS MASTER FILE which is
reached from the SYSTEM PARAMETERS Menu. Also in that Record are the General Ledger
Accounts to be charged for each of the above elements.

There are CHECK BOXES for each of the above items that must be checked to cause inclusion
of that item in the Labor Burden Amount.

2. PERCENTAGE application for ALL JOBS in a JOB CLASS

In the JOB CLASS MASTER FILE you can specify a BURDEN RATE or PERCENTAGE for
ALL JOBS in this JOB CLASS. In this case ALL CHECK BOXES WOULD BE UNCHECKED,
and the ENTIRE BURDEN would be computed, based on the Percentage multiplied
by the Labor Dollar Amount posted to this Cost Code on this Job.

3. PERCENTAGE application for INDIVIDUAL JOBS

When you set up a New Job you can SPECIFY the BURDEN RATE PERCENTAGE for this
Job ONLY. This will OVERRIDE any Burden Rate Percentage in the Job Class Master File,
but will ADD TO any AUTOMATIC CHECK BOXES marked.

If you want the ENTIRE BURDEN COMPUTATION to come from these INDIVIDUAL JOB
ENTRIES, then make sure that ALL BURDEN CHECK BOXES in the Job Class Master File
are left UNCHECKED.

4. COMBINATION of AUTOMATIC and PERCENTAGE computations.

You can use the AUTOMATIC Computation described in Option 1, and ADD A PERCENTAGE
by making a BURDEN RATE ENTRY in the JOB CLASS MASTER RECORD or JOB MASTER
RECORD. These Percentages will be IN ADDITION TO the AUTOMATIC BURDEN Computation.