Payroll burdens

When setting up employee payroll rates, there are three rates that need to be entered:

  • Base cost rate

  • Burden cost rate

  • Bill rate

The total cost rate is equal to the base cost rate plus burden cost rate, and it is typically less than the bill rate.

The burden cost rate can be entered manually or it can be calculated automatically using payroll burdens, which act as templates.

One or more payroll burdens can be imported into the Employee Payroll Item Details page to establish this rate.

The following are examples of payroll burdens:

  • Health insurance
  • Retirement match
  • Unemployment tax
  • Paid holidays

Add a payroll burden

When an employee's pay rate changes, we recommend adding a new record with a new effective date to reflect the change.

  1. Log in to Sage Construction Management using an admin account.
  2. Go to Settings > Feature Settings > Time and Expenses.
  3. In the Payroll Burdens section, select Add.

    A row is added to bottom of the grid.

  4. Enter the Description.
  5. Select a Burden Type.

    Depending on the type, enter the additional hourly rate or a percentage.

    Lumpsum example: 3 = $3 per hour

    Percentage example: 2.5% = 2.5% of employee's base hourly rate (For 2.5%, enter 2.5 in the field.)

  6. Select Save.

A payroll item cannot be deleted if it is referenced on an employee or labor/craft code record.