Job costing is the allocation of time, material, and expenses to a project or job. The total costs for the job are used to budget, forecast, and report how successful a job was. Costs determine how the job’s expenditures and revenue performed.
A portion of a job’s total expenses includes payroll costs. Payroll costs for a job include employee earnings and potentially, the employee and employer taxes, and employee’s deductions.
The initial set up of the product is completed by your Paychex representative. The next payroll check date after set up includes the job costing calculations and report.
After jobs are added to your company, they can be selected to add a home job to an employee in People, to set up auto distributions on an employee in People, and to distribute hours in Pay Entry.
Jobs are listed in the Job Costing view in Company.
To add a new job:
Select Add Job from the Add menu in the Job Costing – Jobs header. A new row is added to the Jobs table.
Enter information, as required.
Click SAVE.
To duplicate a job:
Select a job in the Jobs table and then select Duplicate Job from the Add menu in the Job Costing – Jobs header.
Select the job. A new row is added with the duplicated job information.
Change the job information, as required.
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The Job Number or Job ID must be unique for each job. |
Click SAVE.
To streamline your workflow, the Jobs table can be filtered to display only the jobs you want to view.
Select Advanced Filter in the Job Costing – Jobs header.
Select any combination of Past Items, Current Items, and/or Future Items.
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Any jobs with an end date preceding the current date (a past job), displays in the table. You cannot change any information. |
You can type in the Filter Text field in the Job Costing – Jobs header. As you type, the job name, job number, or job ID that matches displays.
Click APPLY to retain the filter for the current session. Click SAVE to retain the filter for future sessions.
The job number or job ID can be a straight or a segmented number or ID. You can use any combination of numbers or letters.
A segmented ID allows you to customize a job ID and uniquely identify different jobs. There can be either two or three segments. This allows more specific reports to be run. For example, the first ID segment could identify the particular client, the second ID segment could identify a specific city or state, and the third ID segment could identify the type of service to be performed. The segments can be designated any way that makes sense for your company, and the segments can be named to facilitate entry. The total number of characters for a job number or job ID cannot exceed 25 across all segments.
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To set up a segmented number or ID, please contact your Paychex representative. |
Enter the appropriate job number or job ID in the data table when setting up a job.
Job names are not required, but can remind the user what a job number or job ID refers to. The job name cannot be more than 30 characters long.
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The State Tax must be set up on the employee in the Withholding & Taxes screen in People to calculate the tax. |
State tax is optional information that can be associated to a job. Assigning a state tax to a job may be useful in situations when employees are working jobs that are in different states. For each employee in Pay Entry, you can assign hours to jobs with an associated state tax. This ensures the appropriate state tax amount is deducted based on the number of hours worked in each state.
To associate a state tax to a job, select the state tax from the drop-down menu. The state tax must first be set up in the Withholding & Taxes view in Company for the tax to be available.
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The Local Tax must be set up on the employee in the Withholding & Taxes screen in People to calculate the tax. |
Local tax is optional information that can be associated to a job. Assigning a local tax to a job may be useful in situations when employees are working jobs that are in different municipalities. For each employee in Pay Entry, you can assign hours to jobs that have an associated local tax. This ensures the appropriate local tax amount is deducted based on the number of hours worked in each municipality.
To associate a local tax to a job, select the local tax from the drop-down menu. The local tax must first be set up in Withholding & Taxes view in Company for the tax to be available.
When the Workers’ Compensation service is used, a Workers Comp Class Code is optional information that can be associated with a job. You can base your Workers Compensation premiums on a specific class code for a given job. A job may be considered more or less risky than another, requiring that a class code with a different premium rate be used when an employee’s time is allocated to a job.
When entering payroll information for an employee, distributing the hours based on jobs with an associated Workers Comp Class Code ensures that the appropriate Workers Compensation premium is calculated for each job worked.
To associate a Workers Comp Class Code with a job, select the Workers Comp Class Code from the drop-down menu. The Workers Comp Class Code must be set up for your company for the code to be available.
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If you do not see the desired Class Code, please contact your Paychex representative. |
Rate is optional information that can be associated with a job. You can either enter a dollar amount or select a rate number, Rate 1 through Rate 5.
You can use a dollar amount if all employees working a specific job are paid the same rate.
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If $30.00 is associated with job XYZ, the employee rates are not used and $30.00 is applied.
Select Rate 1 through Rate 5 to allow each employee to be paid a different amount. In People, you can assign a specific dollar amount to Rate 1 through Rate 5 for each employee. When setting up jobs in Company, if you select a rate number to associate with a specific job, the dollar amount associated to that rate number for each employee is used to calculate payroll.
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If Rate 1 is associated with job XYZ, the employee rates are not used and $10.00 is applied.
Burden Rate is optional information that tracks indirect costs associated with employees over and above gross compensation or payroll costs. Burden rates are calculated for a job using a rate or a percentage that is applied to earnings distributed to the specified job. The burden rate does not alter an employee’s pay. Burden rate is tracked on the Job Costing reports.
Shift is an optional amount that adds pay for employees who work a specific shift. Additional pay for working shifts can be set up as a flat dollar amount per hour or as a percentage of pay.
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To set up shifts, please contact your Paychex representative. |
The start date defaults to the current date but can be modified.
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If a job does not start for another two months, a future start date can be entered. |
The end date is optional. If no end date is entered, the job is current and available for use. If a particular job is scheduled to be completed by a certain date, an end date can be entered and the job will no longer be available in Pay Entry to assign to employees’ hours past this date.
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If a job has an end date preceding the current date, the information for that job can be viewed but cannot be changed. |
