Complete Summary and Journal Entry Reports with Job Costing for Hourly and Salary Employees Who Track Hours

Good news, BambooHR Payroll clients! Get ready for a game-changing update designed to give you unparalleled visibility into your labor costs and empower smarter financial decisions. We're thrilled to announce significant enhancements to our job costing functionality rolling out in phases, but starting with the following!

What's New? Deeper Insights for Smarter Business!

Job costing is all about assigning payroll expenses to specific jobs, projects, or cost centers, giving you a clear picture of your total project costs. We've heard your feedback, and we're excited to address key challenges that have limited your ability to track full employer costs and accurately allocate expenses.

Here's what you can look forward to:

Comprehensive Payroll Complete Summary Report:

Say goodbye to manual calculations and hello to complete financial visibility! We're introducing a new version of the Payroll Complete Summary Report, "Complete Summary - Project Tracking," accessible via the Reports Tab > Payroll Reporting.

This enhanced report will include a detailed project breakdown of:

• Employer Deduction Costs: Now you'll see a clear allocation of benefits, non-benefit, and insurance costs across your projects.
• Employer Tax Costs: Get precise tracking of employer taxes, broken down by project.
• Total Project Costs: The report will include new rows summarizing the total cost of each project, encompassing wages, employer deductions, and employer taxes.
• Hourly Cost Per Project: Gain a granular understanding of your labor expenses with new rows detailing the hourly cost per project.
• Improved Report Clarity: We've also standardized report labels and added Rehire Date, Pay Date, and Total Gross Wage to all versions of the Complete Summary Report for better clarity and usability. "Pay" is now "Wages," "Class" is "Employment Status," and "Branch" is "Location".

Enhanced Journal Entry Report:

The Journal Entry Report is getting a powerful upgrade as well! It will now include job cost allocations for employer deductions, employer taxes, and wages for employees who track project hours. This means you can import project classifications directly into your accounting systems, eliminating the need for tedious manual calculations and ensuring industry-standard financial reporting.

Navigate to Settings > Payroll > Journal Entry. Locate your custom Journal Entry report, hover, and click to edit the report. You will have the option to select “Project >> Task” as a Group within the Wage, Employer Deductions, and Employer Taxes sections. Once the report is configured to track projects/tasks, upon downloading the report, you will see the breakdown of these calculations.

How Job Costing is Calculated:

The allocation of job costs for employer deductions and taxes is determined by calculating the total pay for a specific project and task, and then dividing that amount by the total overall pay. This results in the percentage of total pay that is attributed to the project. This percentage is then applied to a deduction or tax amount to determine the specific deduction or tax amount for that particular project. For employer taxes, the calculation for project allocation specifically uses total taxable wages. The system will ensure that rounding errors are accounted for, and the sum of the broken-out amounts for each deduction or tax equals the original total amount. Any difference will be added to the last object in the breakdown.

Who Does This Impact?

All BambooHR payroll clients and users with "Run Payroll" permission or specific EIN access levels (Full Admin + EIN, Payroll Admin + EIN, Payroll Admin (Non-Approver) + EIN, Payroll Reports Only + EIN) will benefit from these exciting new capabilities.

Get ready to experience a new level of financial clarity and control with BambooHR's enhanced job costing! We're committed to providing you with the tools you need to succeed.

As always, we love your feedback! To provide product feedback on this feature and more, head over to our product feedback page and let us know how we’re doing.