The following article relates to setting up your cashflow forecast and relates only to employees who DO NOT record timesheets against jobs. JACK can estimate your employee-related overhead expenses (for example, sales and administration-related employees) and add them to the cashflow forecast.
Either add a new staff member via Contacts > Staff > + Staff or edit an existing staff member and complete the following steps:
Click on the Wages subheading, and under the Add Wage Expense section, select the month for which you would like this wage to be active. For example, for an existing employee, you would select the first available month, or if you have a new staff member starting in the future, select the relevant start month.
Next, enter the employee's Gross wage without superannuation. Note that the gross wage is the same as the wage amount per their employment contract. You can enter this figure as a weekly, fortnightly, monthly, or annual amount, and JACK will calculate the monthly expense amount to be added to the cashflow forecast.
As an example, entering an annual salary of $80,000 will be calculated as follows:
Annual gross wage: $80,000
Monthly gross wage: $6,666.66 ($80,000 / 12 months)
Fortnightly gross wage: $3,076.92 ($80,000 / 26 fortnights)
Weekly gross wage: $1,538.46 ($80,000 / 52 weeks)
If you have only an hourly gross wage amount, you can convert it to a weekly wage by multiplying that hourly wage by the regular hours per day found in their employment contract. Most employers list a workday as 7.6 to 8 hours per day in their contracts.
You now need to calculate the estimated Superannuation expense related to this employee's wages. Under the Monthly Breakdown section, enter the monthly superannuation expense. The compulsory superannuation rate is currently 11.5% of the gross wage, but you should refer to the ATO website for an up to date rate. In the example we are using, the monthly superannuation expense would be as follows:
Monthly superannuation cost = Monthly gross wage $6,666.66 x 0.115 = $766.66
The final step is to calculate the estimated monthly PAYG Withholding Tax related to this employee's wages. To calculate the PAYG Withholding Tax amount, you can use a calculator tool such as https://paycalculator.com.au/ (Note we have no affiliation with this website, and the information provided is a guide only) and complete the following steps:
Enter the employee's annual salary, and tick on whether the employee has a Student loan (HECS debt) if relevant.
Refer to the pay summary and, in particular, the Monthly Tax amount that is calculated on the right-hand side.
In the example, an annual salary of $80,000 results in a monthly PAYG tax amount of $1,369 each month.
Under the Monthly Breakdown section, enter the monthly PAYG Withholding Tax and ensure you click on Save.
Employee costs will now be displayed in the cashflow forecast, which can be found by navigating to Finance > Cashflow > and scrolling down to Expenses. The Net wage expense (the amount paid to the employee) will show in the Wages section, and the Superannuation and PAYG Withholding will be displayed based on whether you have set your payment frequency to monthly or quarterly.
