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Salary Budgeting & Variance Reporting (PAY)

Payroll Budgeting

Labor is the largest portion of your annual budget and should be carefully scrutinized. KREG’s Payroll Budgeting provides weekly, bi-weekly or monthly salary budgeting at the job code/hour code level of detail. KREG’s Payroll Budgeting system features include:

  • Employee snapshot provides the information to compute accurate average hourly rates by job code and by pay period in every department.
  • Hours are budgeted by job code and pay type in each department and spread across the pay period.
  • Raise guideline tables allow you to accurately forecast the impact of salary increases, especially beneficial during labor union negotiations.
  • Model proposed market based increases to determine the best option available to retain staff.
  • Labor budget detail is accrued to fiscal period for monthly reporting.
  • Once the budget is complete, bi-weekly variance reporting by job code/hour code pinpoints potential issues, such as undocumented overtime and overstaffing.
  • Custom designed productivity reports using your payroll data also provide important information regarding staffing so adjustments can be made when there is a disparity between actual data and the budget or target based on volume.

Managers review their budget input forms and enter hours and or FTEs for their employees. The input workbook is a multi-sheet workbook, with the summary as the first sheet as shown below.

payroll budgeting 01

The job code detail is entered by the manager in the appropriate input sheet.

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This level of detail is important when modelling union contracts, proposed raises, etc., as the proposed changes can be applied to all earning types and a more accurate projected increase calculated.

Once the budget is finalized, it can be monitored as actual data is imported weekly/bi-weekly/monthly. There are multiple ways to handle this. This report below shows job code/hour type detail and compares the current pay period and YTD actual to the budget. This information should be viewed each pay period so the manager can see if a particular job code is over budget. Statistics are included at the bottom of this report as a reference for the managers.

payroll budgeting 03

Another way to monitor the labor information is via KREG's poweful report writer contained within the GL Budgeting System. You design the report that best suits your need so the organization can focus on problem areas.

Data by department/job code/pay type is fully utilized in KREG's GL report writer. The example below shows the job code detail in specific departments, for the pay types Regular, Orientation and OT. We are comparing actual and budget data by job code and computing a variance for the dollars associated with the pay types.

payroll budgeting 04

You need to review nursing hours because the changes implemented are not reflecting the expected decrease in hours/FTEs compared to last year. When reviewed, the actual data reflects a 2% increase instead of the anticipated 1.5 % decrease.

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After reviewing the nursing departments, you can focus on the areas that are not in compliance: ICU, PCU and ED. A review of the detail hours for ICU shows the RN positions are not showing the expected reduction in hours, so this is an issue for review with that department.

payroll budgeting 06

This is just one example demonstrating how you can utilize the data stored in KREG on an as needed basis.

There are numerous issues that can be monitored weekly/bi-weekly or monthly via KREG’s Payroll Budgeting system. The data is at your fingertips, all you need to do is define the rows and columns of the report and apply any specific grouping criteria, such as departments, job codes or pay codes. There is no need to wait for your Human Resource or IT department to write a report to provide the data for analysis.

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