Staff costs

1. Open the staff record to the costs tab.
2. Type the cost for the staff member per hour into the 'set cost' field.
3. Set the 'effective from' date for when this rate will start from.
4. Save.

1. Open the staff record to the costs tab.
2. Select the salary type.
3. Select how the salary will be calculated - annual package, annual salary, or pay rate per hour.
4. (Optional) Check the values for extras, superannuation %, hours per year, availability %, overhead adjustment, and target utilization. Update if required.
5. Save.

If you have updated the staff record by mistake, then use the 'undo last change' option to remove the top row shown in the history panel.

Click the page actions button in the top right, and select undo the last change.

1. Staff type At the Professional product level the only option in this drop down is 'set cost'. This allows you define the staff members cost per hour.
2. Set costThis field is only shown when the 'set cost' type is selected. Enter the cost of this staff member per hour.
3. Effective from date Type the date that the cost will take effect from. This defaults to today's date, click into the field to select another date from the drop down calendar.

1. Staff type Select type of staff member: Salary, wages, part-time, set cost, casual or contractor.
2. Effective from date Type the date that the costs will take effect from. This defaults to today's date, click into the field to select another date from the drop down calendar.
3. Set cost This field is only shown when the 'set cost' type is selected. Enter the cost of this staff member per hour.
4. Calculate by options Select if the staff member has an annual package (salary + super + extras) or an annual salary (base salary excluding super) or a pay rate per hour (hourly rate excluding super). Available for salary, wages, part time, casual, or contractor types (no set cost).
5. Cost settings (Optional - click the drop down to view)
   1. Extras Enter the value for any extras paid on top of the salary, such as car, mobile phone, internet etc. If annual package is used as the calculation method, when you type an extras value it is used to re-calculate the fields annual salary and pay rate per hour, and super total.
   2. Superannuation - on-costs The percentage of the annual package that will be paid into the staff members superannuation fund. This is also known as a pension fund, 401K, and Kiwi Saver. This is normally a government regulated percentage that each salaried person must contribute to their retirement savings. This value defaults from the financial controls.
   3. Super total The total value that will be paid per year into the superannuation or retirement fund.
   4. Hours per year Value defaults from financial controls. This is the number of hours the staff member could work per year if they didn't take any leave. For example 8 hours per day, 5 days a week is 2080 hours per year. Update this value for a staff member to more accurately work out a base hourly cost value.
   5. Availability Value defaults from financial controls. This is the percentage of the year that the staff member is available to work. Availability takes into account that out of the 52 weeks in the year that staff may only work for 43 weeks after taking holidays and medical leave. Update this value for a staff member to more accurately work out a base hourly cost value.
   6. Adjusted cost The adjusted cost is the cost for the staff member before any costs for running the office they are located in are applied. This value is worked out as: Step 1: the number of hours per year (1976) x availability (0.80) = 1580.80 hours. Step 2: the salary package ($80,000) / 1580.80 hours = $50.61 adjusted cost per hour.
   7. Overhead rate Value from financial controls. The overhead factor is the cost of running office where the staff member work, and is set to cover the office costs when calculating actual cost and profit in Synergy.
   8. Overhead adjustment The overhead defaults to 100%. Update this percentage to mark up / down the overhead cost for a staff member. This can be required when a staff member works from home, or from a remote office which does not cost as much to keep them employed as a staff member working in the primary office location. If the staff member works in the primary office location this figured is expected to be left at the default value of 100%. e.g. Update the overhead adjustment value to 80% and the actual overhead cost for the employee is discounted by 20%. When the overhead cost is reduced the actual cost charge out rate is the then also reduced for that staff member.
   9. Actual cost The actual cost for the staff member after the costs of running the office location are applied. This value is worked out as: Step 1: the number of hours per year (1976) x availability (0.80) = 1580.80 hours. Step 2: the salary package ($80,000) / 1580.80 hours = $50.61 adjusted cost per hour. Step 3: adjusted cost ($50.61) x overhead rate for the organization (2) = $101.22 actual cost per hour.
   10. Target utilizationNominate a percentage value of how much time the staff member is working on project billable tasks. Value defaults from financial controls.
   11. Target profit A percentage % added above the overhead factor to determine target profitability levels. This will add the % margin above the break-even overhead rate to determine the target charge value for staff. Value from financial controls.
   12. Target charge The staff minimum charge value. The lowest value that this person should be charged out at on a project, if the other business overheads and target profits are to be met. This value is worked out as: Step 1: the number of hours per year (1976) x availability (0.80) = 1580.80 hours. Step 2: the salary package ($80,000) / 1580.80 hours = $50.61 adjusted cost per hour. Step 3: adjusted cost ($50.61) x overhead rate for the organization (2) = $101.22 actual cost per hour. Step 4: Actual cost ($101.22) x target profit (20% as 1.2) = $121.46 target charge value.