Labour Drivers Overview | Magnifi Help

Labour Drivers - Overview

Purpose

This article provides an overview of Labour Drivers in Magnifi. Labour Drivers are used to project payroll costs, which then flow automatically into the Profit and Loss Projection.


When to Use

Use Labour Drivers when you want to:

  • Build a payroll forecast based on employee data that links directly to your Profit and Loss.

  • See labour costs split between Direct Labour and Overhead Labour, based on employee classifications.

  • View the detailed data behind your labour cost projection.

  • Allocate employee costs to divisions for divisional reporting.


Overview

  • Work through the tabs from left to right to build your labour cost projection.

  • Start by adding or importing employees under the Employees tab.

  • Move to the Hourly Rate, Hours per Week, and (optionally) Allowances tabs to set up employee details for payroll calculations.

  • In the final tab, Gross Wages, enter projected pay periods, overtime, and on-costs to complete the gross wage projection.

  • Payroll costs automatically flow into the Profit and Loss Projection.

  • Costs appear under either Direct Labour Cost or Overhead Labour Cost, depending on each employee’s classification.

  • Double-click any payroll account in the Profit and Loss Projection to view the data behind the forecast.


Tips / FAQs

  • What if I don’t use Labour Drivers?
    You can still enter payroll costs manually in the Profit and Loss Projection. However, on-costs will not be automatically calculated. To project wages manually, remove payroll links in the Chart of Accounts and add on-costs separately as a % of wages.

  • What happens if I change an employee’s details mid-year?
    Any changes will flow through to future months from the point of adjustment, automatically updating your labour cost projections.

  • Can I add or remove employees?
    Yes. You can add new employees, edit existing ones, and enter commencement or termination dates to factor in staff changes throughout the year.