How to project labour costs in Magnifi

Labour Drivers - Overview

Labour Drivers is where you build the labour cost projection.

You start with adding/importing employees under the Employee tab and then progressing through the tabs to ultimately project the Gross Wages (including on-costs)



An organisation will typically work through this process as follows;

  1. Employees; Import employees from Xero to capture their current payroll details including hourly rate and hours/week.
  2. Hourly Rate; Update future monthly values if needed. Eg, expected pay rise, change to working hours, maternity leave etc
  3. Gross Wages; Enter # pay periods, overtime and on-costs to finalise the labour cost projection.
The Labour Drivers will automatically update the Profit and Loss Projection. The labour cost will appear under either Direct Labour Cost or Overhead Labour Cost depending on the employee's Classification. 

If you double click on a payroll account, it will reveal the data behind the forecast. Eg, 

You can also allocate an employee across multiple divisions to project the labour cost at a divisional level. Go to Divisions to learn more.