Purpose

This article explains how to import, add, edit, terminate, and classify employees under Labour Drivers in Magnifi. Employees form the basis of labour cost projections, which then flow into the Profit and Loss Projection.

When to Use

Use this guide when you need to:

• Import employee details from Xero or a CSV file.

• Add new employees manually.

• Edit employee records.

• Terminate or delete employees.

• Classify employees as Direct or Overhead for reporting purposes.

How To

Import Employees from Xero

1. Go to Labour Drivers > Employees.

2. Click Options > Import Employees and select Xero.

3. Enter your Xero credentials.

4. Review the imported data before clicking Save to confirm.

Things to note when reviewing data:

• Changes to employee details appear in green. Hover over the value to see the current value in Magnifi.

• Terminated employees appear in orange.

• Magnifi matches employees by name. If an employee was manually added in Magnifi before being entered in Xero, a match will be identified.

• To exclude an employee, click the X symbol.

• More details (e.g., start and end dates) appear in the employee drop-down.

• Magnifi extracts data from the payroll template in Xero.

  • If no data appears, the payroll template may not have been populated.

  • If the hourly rate looks unusual, it may be due to multiple line items; Magnifi will average them.

⚠️ Always review data carefully before saving.

Import Employees from CSV

1. Go to Labour Drivers > Employees.

2. Click Options > Import Employees and select CSV.

3. Export the template if needed.

4. Populate the fields:

   • First Name

   • Surname

   • Employment Type (e.g., casual, part-time, full-time)

   • Employment Start Date

   • Employment End Date

   • Hours per Week

   • Direct Labour % (enter 100% for Direct, 0% for Overhead)

   • Hourly Rate

Note: You don’t need to complete every field in the template.

Add or Edit Employees

• Add an employee:

  1. Go to Labour Drivers > Employees.

  2. Click Add Employee and enter their details.

• Edit an employee:

  1. Click the employee’s name (hyperlink).

  2. Update their details.

💡 Tip: Planning to recruit in future? Add a placeholder employee.

• Example: First Name: New, Last Name: Manager.

• Enter the estimated start date.

• Once hired, update the actual name. Magnifi will match employees by name.

Terminate or Delete Employees

• Terminate an employee:

  1. Click the employee’s name in Labour Drivers > Employees.

  2. Enter an Employment End Date.

     • Labour cost projections stop from this date.

• Delete an employee:

  1. Click the employee’s name.

  2. Select Delete Employee.

Classify Employees

Employee classification determines where costs appear in the Profit and Loss Projection:

• Direct Labour – employees who generate variable costs. Their costs move in line with income (e.g., field staff, billable workers).

• Overhead Labour – employees whose costs are fixed regardless of income (e.g., administration staff).

You can split Direct/Overhead % by selecting Custom on an employee record. Only use this option if your accounting system also accounts for employees this way, otherwise Actual vs Budget may not align.

Also consider how employees are classified in your accounting system to ensure consistency in Actual vs Budget reporting.

Tips / FAQs

• Can I use placeholders for future hires?
  Yes. Add them with a temporary name and start date, then update later once details are confirmed.

• Will employee changes update automatically?
  Yes. Once imported, changes flow into future months after saving. You’ll be prompted to confirm the effective month for the update.