Payroll Projection

Payroll projections (which create payroll liens which are known as SP liens or Main SP liens) are dynamic in nature and can fluctuate over time.

To maintain discretion, the Main Salary Projection (aka. Main SP) Lien amount shown on the budget side is a lump sum of all projections and reconciled expenses. This amount is reduced by expenses as they are posted.

project-emp

Example

This example is an over-simplification, with the intent of conveying the concepts.

If a person is paid $12,000 this year, a portion of budget must be committed to account for that anticipated future expense ($12,000).

  • When the year starts, we plan to pay $12,000 total for the year (have actually paid $0, and have $12,000 in liens remaining).
  • after one month we still plan to pay $12,000 total for the year (now we have actually paid $1,000, and have $11,000 in leins remaining).

Questions

  • Where does the benefits rate value come from?
    • It’s a guestimate based upon the benefit rate entered at the distribution. This guestimate can be improved when compared against the actual benfit rate
  • Where does the DOS code come from?
    • It mirrors PPS
  • How are the Monthly projection values calculated?
    • Monthly pay rate, benefits (% of rate), distribution percentage
  • How to accommodate change in the pay rate (percentage, or projection dates)?
    • The past (reconciled) expenses remain and the future payroll transactions need to be re-projected at the new rate (or dates)
    • Ideally the distribution that needs changing (rate or percentage) should be projected through to the last date. A new distribution should be created with the new pay rate and/or percentage.