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Post Info TOPIC: Cost of Wages/ Salary


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Cost of Wages/ Salary
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-- Edited by Rhianrach on Friday 27th of April 2012 05:10:24 PM

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Steve


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Hi,

I am learning Sage Payroll currently and have a question.

Can anybody pls help me with how to calculate the total cost of Wages/Salary toa company.

 

Thanks

Yukti



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The total cost to a company is generally going to be the gross salary figure plus the employers' National Insurance contribution.  You should be able to print reports from Sage Payroll (such as the 'Payment Summary History' reports) that show these totals. 



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These comments are outline only and are not a substitute for specific professional advice.



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There are many other factors which can complicate concepts like "total wages/salary" cost when considering anything other than the simplest and smallest company. This is why usually payroll software doesn't deal in concepts like "total cost" but instead gives a breakdown of payments/deductions/attachments/employer contributions, so that the accountant/bookkeeper can work out total cost using their knowledge of how those elements should be treated.


Complications include (but are not limited to) elements like

  • Salary Sacrifice
  • Employer's pension contributions
  • SMP (SPP/SAP) compensation
  • SSP recovery
  • Holiday pay accrual


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@ all -Thanks a lots. It was very helpful.

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