Very few organizations align all of their budget costs for employees exactly on the fiscal year. Fortunately that’s not a problem for Host Analytics. Since Host uses pre-built compensation items to track and record all expenses related to an employee including: salary, bonus, 401k, medical, dental, car allowances, etc., changing any of these mid-year is a snap.
The easiest and most straightforward thing we’ve found is to set up two sets of compensation items to account for those two different cost streams. Any employee related costs, like medical and dental, that are expected to change mid-year can now be captured. Ideally, you should set them up at the beginning of your budget cycle with your best estimated calculations and then adjust the calculation as you learn more about the real impact. Let’s say for example that negotiated Long Term Disability costs are expected to increase by 10% six months into your budget year. For simplicity we’ll say that LTD is 10% of an employee’s salary. In this case you would do the following:
- Establish two additional pay plans, one for the first half of the year, and one for the second half of the year. Maintenance > Detailed HR > Pay Plans.
- Click the add button
- Give the pay plan a name: Ex: First Half Year and Save
- Click on the Pays Setup
- Choose the first budget year Fiscal Year: ex: 2016
- Highlight the new pay plan
- Complete the “grid” below similarly to how this one is filled out. (note: it follows the same patterns used in spreads setup).
- Click Save then press the Copy Forward button and check the next Fiscal Year(s) to ensure the pattern copied forward into the successive budget years. If the pattern did not copy then manually copy the pattern to all remaining budget years.
- Repeat steps b – g for the Second Half Year as show below.
- establish two compensation items, one for LTD costs months 1-6 and another for LTD costs months 7-12 in the Compensation Items tab in Maintenance > Detailed HR > Compensation. (notice the calculation percentage has gone from 10% to 11%) See example of the LTD 7-12 Screen Shot below.
Important Note: You must check the APPLY PAY PLAN checkbox at the bottom of the page to associate your new Pay Plan to the respective compensation item before you save.
- attach both compensation items to all respective employees in the Employee Type tab in Maintenance > Detailed HR > Employee Types tab under the appropriate scenario.
Typically this type of situation applies to Medical and/or Dental Expenses but for simplicity we chose LTD.
Learn more about Host, and what it can do for you by contacting Brittenford and by seeing the following Host Analytics resources:
- Are We Really at the End of Spreadsheets?
- Block Templates: Uses and Advantages
- FAQ: “Why Can’t I Add a Dimension in Host Analytics?“
- FAQ: “What Do All of these Security Roles Mean?“
- Five Ways We’ve Improved the Speed of Host Analytics Implementations
- Differences between Financial Consolidations and Consolidated Reporting
- Winter Released Just in Time for Spring: Host Analytics Winter Updates