Contents of this article are applicable to the following users
Tier: NA
Product: PayrollAny
Platform: Web
Access Level: Owner
Now owners can seamlessly pull labour cost data from PayrollAny, and hours worked from Timesheets to generate section labour cost reports. Currently, cost is split across sections based on the number of hours staff has worked in each section.
Do note that reports may take up to 1 hour to reflect updates after a pay run is generated.
This guide will cover the following:
Setting Up
Permissions
We recommend to set up permission for "View section labour cost report" under Permission Groups.
By default, the system follows the default permission setting for “Run payroll” because we understand that sensitive cost data should not be exposed to everyone.
If “Run payroll” = ALLOW (all staff), “View section labour cost report” = ALLOW
If “Run payroll” = DENY (all staff) / DENY (teams/sections) / ALLOW (teams/sections), “View section labour cost report” = DENY
You may overwrite the permissions for "View section labour cost report" anytime. The latest overwritten permission will always be in effect.
Cost Reports Data
Staff profile, timesheet and payroll needs to be set up properly to ensure accurate section labour cost reports. Here is what you should take note of:
Timesheet hours must be accurate
Payroll data must be accurate
Staff’s home section should be set otherwise paid leave costs will not be accounted for in labour cost. Refer to FAQ to learn more about how cost is affected.
Additionally, as salary is sensitive information, you may also set up permission groups to allow limited staff to view the section labour cost reports.
Go to Settings > Permission Groups > Add Permission Group
Fill up the information under General Settings
Under Permission Settings, set the desired permission for section labour cost report
Assign or tag staff to the permission group. You can learn more here.
Calculations
Total Labour Cost
Total Labour Cost = Sum of gross (all the components) + net additions and deductions + all employer statutory items for the month
Labour Cost Split Calculation
Currently, cost is split across sections based on the number of hours staff has worked in each section. Here is an example to illustrate how the calculation works:
| What happened | Section | Hours Worked |
Mon | Working Shift | Section A | 8 hours |
Tue | Annual Leave | Section B | 8 hours |
Wed | Working Shift | Section A | 8 hours |
Thu | Working Shift | Section A | 8 hours |
Fri | Working Shift | Section B | 8 hours |
Sat | Working Shift | Section B | 8 hours |
Sun | Off Day | - | 0 hours |
Total |
|
| 48 hours |
Working shift hours are tagged to the respective sections based on where they clock in and out from
Annual leave was tagged to section B because that is the staff’s home section. This applies to all paid leaves.
How cost will be split across outlets for the staff:
Section | Hours Worked | % Split | Basic Pay Cost (assume staff’s basic pay is $2000) |
Section A | 24 hours | (24/48) x 100% = 50% | 50% x $2000 = $1000 |
Section B | 24 hours | (24/48) x 100% = 50% | 50% x $2000 = $1000 |
Total | 48 hours | 100% | $2000 |
Types of Labour Cost Reports
To access section labour cost reports, go to Reports > Section Labour Cost
You can only view section labour cost reports per entity, per month.
Additionally, the section and contract type filters only work for the following reports:
Labour Percentage per Section
Labour cost per section, with payrun item breakdown
Labour cost per contract type, with section breakdown
Labour Percentage per Section
A key metric to track if companies are overspending or underspending on labour cost is to calculate labour percentage (labour costs as a percentage of your total sales). Based on industry benchmarks, F&B companies should aim to keep labour costs between 28-33%.
Actual sales data is required to generate the report. Learn more about uploading actual sales data here.
Data is purely for illustration purposes
To export the report,
Move your cursor to the top right corner of your desired report and click on the “...” icon
Select the format that you want to export to
View your exported report
Labour Cost per Section, with Payrun Item Breakdown
With this report, you will be able to quickly compare how much your company is spending on basic salary, overtime, employer CPF and other pay run items, across all sections.
Data is purely for illustration purposes
Hover over the graph to view more detailed information
To export the report,
Move your cursor to the top right corner of your desired report and click on the “...” icon
Select the format that you want to export to
View your exported report
Labour Cost per Contract Type, with Section Breakdown
This report allows you to compare how much you are spending on full time and especially part time staff across sections
Data is purely for illustration purposes
Hover over the graph to view more detailed information
To export the report,
Move your cursor to the top right corner of your desired report and click on the “...” icon
Select the format that you want to export to
View your exported report
Labour Cost per Staff & Section, with Payrun Item Breakdown
This report provides a detailed breakdown of how cost is split per pay item for each staff in each section. Labour percentage column shows the % split of cost across sections based on the number of hours worked.
Data is purely for illustration purposes
To export the report,
Move your cursor to the top right corner of your desired report and click on the “...” icon
Select the format that you want to export to
FAQ
Q: How will total labour cost be affected if staff’s home section is not set?
A: When a staff does not have home section tagged, leave hours will not count to total hours. It will be tagged as “uncategorised”. Here is an example to illustrate how the percentage split of cost across sections will be affected for a staff with the following timesheet:
| What happened | Section | Hours Worked |
Mon | Working Shift | Section A | 8 hours |
Tue | Annual Leave | Uncategorised | 8 hours |
Wed | Working Shift | Section A | 8 hours |
Thu | Working Shift | Section A | 8 hours |
Fri | Working Shift | Section B | 8 hours |
Sat | Working Shift | Section B | 8 hours |
Sun | Off Day | - | 0 hours |
Total |
|
| 48 hours |
How cost will be split across outlets:
Section | Hours Worked | % Split |
Section A | 24 hours | (24/48) x 100% = 50% |
Section B | 16 hours | (16/48) x 100% = 33.3% |
Uncategorised | 8 hours | (8/48) x 100% = 16.7% |
Total | 48 hours | 100% |
The percentage split is now different from the initial example with the 50% split. Ultimately, we always recommend users to add a home section for staff to ensure paid leave costs are accounted for.
Q: What is the "Other Supporting Questions"?
A: These are additional supporting questions used to build the 4 dashboards in the report. You may ignore them.