⚠️This only applies to employees who do not record timesheets against job budgets. JACK can estimate employee-related overhead expenses and automatically include them in your cashflow forecast.
Overview
To set your staff wage expenses, navigate to Contacts > Staff > Wages. Select the month from which the wage should apply. Choose the first available month for existing employees, or select the start month for employees beginning in the future.
Wages
Enter the employee’s gross wage (excluding Superannuation).
This amount should match the wage specified in the employee’s employment contract. You can enter the wage as a weekly, fortnightly, monthly, or annual amount, and JACK will automatically calculate the monthly expense for your cashflow forecast.
Example
If you enter an annual salary of $80,000, JACK will calculate the equivalent wage amounts as follows:
Annual gross wage: $80,000
Monthly gross wage: $6,666.67 ($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 only have an hourly gross wage, convert it to a weekly amount by multiplying the hourly rate by the employee’s regular daily hours, as outlined in their employment contract. Most employment contracts define a standard workday as 7.6 to 8 hours per day.
Superannuation
Calculate the estimated Superannuation expense for the employee’s wages. Under the Monthly Breakdown section, enter the monthly Superannuation amount.
The compulsory Superannuation rate is currently 12% of the gross wage. For the most up-to-date rate, refer to the ATO website.
Example
Using the previous example:
Monthly gross wage: $6,666.66
Superannuation rate: 12%
Monthly Superannuation cost:
$6,666.66 × 0.12 = $800.00
Calculate PAYG Withholding
To calculate the PAYG Withholding amount, you can use an online calculator such as
ℹ️ JACK has no affiliation with this website. The information provided is a guide only.
Enter the employee’s annual salary and indicate whether they have a Student Loan (HECS debt). Then review the pay summary, focusing on the Monthly Tax amount shown on the right-hand side.
Example
Using an annual salary of $80,000, the calculated monthly PAYG Withholding tax is $1,369. Enter this amount as the employee’s monthly PAYG expense so it can be included in your cashflow forecast.
Under the Monthly Breakdown section, enter the monthly PAYG Withholding Tax and click Save.
💡If you need to make updates in the future, click Schedule Change to modify the employee’s salary details. You can set the change as ongoing, temporary, or ending, and select the month it should apply from. You can also add a manual expense to help keep your cashflow forecast as accurate as possible.
Cashflow Forecast
Employee costs will now appear in your cashflow forecast. To view this, navigate to Finance > Cashflow > Expenses. The net wage expense (the amount paid to the employee) is shown under Wages. Superannuation and PAYG Withholding are displayed based on whether your payment frequency is set to monthly or quarterly.
ℹ️ See this article to set up your company wide cashflow settings.