Employee Component

The employee component allows you to enter salaries for your staff and automatically calculate national insurance and pension benefits. You can use one employee component to model multiple employees on the same salary grade or use one component per person you employ.

 

Setup

Number of employees 

With this table, you can manually enter the number of employees you have throughout your plan. This is really useful if you plan on hiring a few more people each year. The cost and other data you input into the component will apply to each employee (so if you want to have a different salary for new employees, use an additional employee component).

Cost per employee (spread monthly)

Here is where you can enter the cost of employing a single person. This will be multiplied by the number of employees you have entered above.

You can also use the table input for planning salary changes.

Keep in mind that if you are using one component to model multiple employees, it will raise all of the employee salaries at the same time. If you want to raise salaries at different times you will need to use separate employee components to achieve this.

 

Employer pension contribution (% of salary)

Employer pension contribution is a percentage based on an employee's salary. Enter your employer pension contribution tab here. This is applied on top of the cost per employee you entered above.

Apply national insurance rate (see settings for rates)

Ticking this option will calculate Employer NI on top of each employee's salary. The rates and threshold for NI are set in the settings of your plan. This is applied on top of the cost per employee you entered above.

Delay when national insurance / salary and pension is paid on your cash flow

This controls when you pay this employee cost. There are two inputs, and you can delay the appearance of this cost on your Cash Flow by changing the Delay dropdown option here. 

Change to direct cost

Switching this on will treat this employee as a cost of sales on your reports.