What is salary allocation?
Salary Allocation allows you to assign and distribute salary costs across your schedule in order to get accurate reporting on how you pay salaried team members.
Salary costing is not exported to payroll, and is only used for reporting purposes within Deputy.
When is salary allocation helpful?
This is particularly helpful in instances where salaried staff (i.e Healthcare Professionals, Government Employees) only work certain days of the week, with different amounts of time per day, but with similar duties, where you would like to allocate their salary to the days they are scheduled.
Setting up salary allocation
To apply Salary Allocation to a team member, they will first need to have a Salary set as their pay rate.
1. On the People tab, click on the name of the team member you would like to allocate a salary to.
2. Select Employment and click Edit.
3. In the Pay Details section, click on the field for Pay rates and select Salary.
4. Under Salary Period, select whether the team member’s salary can be entered as Annual or a Weekly.
5. After selecting the Salary Period enter the appropriate Salary Amount.
If you have chosen to select and enter an Annual Salary amount then Deputy will now calculate and display a weekly salary amount (Annual salary / 365 x 7 or Annual salary / 366 x 7 on a leap year)
6. To enable Salary Allocation, click the dropdown for Salary Cost Allocation and choose your preferred allocation type. The four types are explained below.
Once you have selected Salary the following fields will appear:
Types of Salary Allocation
There are 4 types of Salary Cost Allocation:
1. No Allocation
This option will generate no costing for this team member
2. Days of the Week - fixed days
This costing option is useful if your team member works set, predictable days in the week with no exceptions. You can select these days in the Week Days Salary Allocation section by ticking the boxes for the relevant days. The daily cost figure for that team member will be calculated by dividing the weekly salary evenly across the selected days.
Note: This costing does not require the team member to have a schedule in order to appear in reporting.
As the team member doesn’t need schedules for this costing to be created, you will need to specify which area in Deputy you prefer the salary to cost to by selecting it in the Specify Areas to Allocate Salary field.
3. Scheduled Days
This option is best used if a salaried team member works different, non-predictable days of the week and will evenly distribute the salary across the days that they are scheduled to work.
Example: If the team member is scheduled to work on Sunday, Monday and Tuesday, it will take the weekly salary and divide it by 3, then allocate the costing to each of the days they are scheduled.
After selecting “Scheduled Days,” you will have the option to allocate the costing in two ways:
- Scheduled area - allocates cost to the Area in which this team member works their shift
- Specific area - allocates cost to a specified Area, regardless of where the team member actually works during their shift
4. Scheduled Hours
This option is similar to Schedule Days, however, it will distribute the costing based on the number of hours scheduled on each day, instead of distributing it evenly across the days.
Example: A team member has a weekly salary of $1000. They are scheduled for 20 hours a week, and one of their shifts in that week is 8 hours long. So how much is the cost of the 8-hour shift? For this allocation, we take the weekly salary ($1000) divided by the hours scheduled (20) and multiply that by the shift length (8).
$1000 ÷ 20 x 8 = $400
Set the salary allocation day for the start of the work week
During the set up process described above, you will have noticed that the salary costs are distributed across a weekly period. The start day of this weekly period becomes important when calculating the salary distribution costs, especially if your work week does not begin on a Monday.
Deputy allows you to set up the work week start day for the purposes of calculating Salary allocation costs using two options:
Option 1: At a team member level
On team member level, you can set the agreed working hours for each salaried employee. The agreed working hours Work period start day will then be used as the week start day for that employee's salary costs distributed across each day during that week.
In the example below, Casey has been set as salaried in the Pay details section of their profile and starts their work week on a Wednesday.
Under the Working hours section, a new work period can be created.
The new work period can be set as Weekly, starting on a Wednesday.
Once this work period is created then the regular or total hours per period can be set and Saved in the profile.
Now the weekly salary costs will be distributed from Wed to Tue. For more details about how to set up agreed working hours, please read the article: Set up a team member's agreed working hours.
Option 2: Location settings
For those team members who do not have agreed hours set up, then the team member's Primary Location's First day of week setting will be used to set the start of the work week period to distribute their salary costs.
In the example below, Lee has been set as salaried in the Pay details section of their profile allocation and the Salary allocation is set as Scheduled Days.
There are no agreed working hours set up in this team member's profile but you can see that their Primary Location is set as "The Spruce".
In the Location settings for the Location "The Spruce" we can see that in the Scheduling settings the Foirst day of the week is set as Friday.
This means that in this example Lee's salary allocation will occur for a Friday to Thursday work week period.
Viewing Salary Cost in the Schedule
Once Salary Cost Allocation has been enabled, the salary costing figures that have been generated for a team member are included in the wage cost summaries at the top of the Stats panel at the top of their schedule.
In this example, on Monday Akira's daily salary cost of $294.32 has been added to Sally and Harriet's hourly costs of $268 and $392 to show the total wage cost for team members working in Admin to be $909.32.
The Team Member list on the left will show a cost for hourly paid team members, but salaried team members simply show as Salary.
Note: If you have enabled the Apply and Report On-Costs option in your Location settings, then any Salary Costing generated in that location will have the additional On-Cost percentage applied to it.
Changing the location of salary allocation
If a team member's primary location has changed, you may wish to also change the location and area that their salary costs are allocated to.
To do this:
- On the People page, click on the name of the Team member you wish to edit. Select the Employment tab, and click Edit.
- Ensure they have the new 'Works at' location added to their profile.
- Remove the existing salary allocation selection so that 'No allocation' is shown in the drop-down menu and click Save.
- Click Edit again, allocate the salary costs to the new location and click Save.
You can also run reports on the Salary Allocation costing for a team member or a location in the Reports tab.
1. Click on the Reports tab.
2. Look for Schedule vs Timesheet vs Sales, and click View full report.
This report will provide you with an overview of the salary costing for each salaried team member in the Salary Cost column and where it has been allocated.
Note: If you make any changes to the salary allocation for a team member, the new costing amounts will only reflect for future dates and will not update the team member’s past salary allocation costing.