Labor Burden Transactions
Labor burden is the cost that a company incurs as a result of employing people. Labor burden can include:
Company-paid payroll taxes.
Insurance.
Fringe benefits, such as union pensions.
Direct labor costs, such as costs for small tools.
These conditions must exist for the system to automatically create labor burden transactions in the workfile:
The Business Unit Burden Flag in JD Edwards EnterpriseOne Payroll must be set to create burden entries in the Burden Distribution File table (F0724)
A deduction must be set up for labor burden.
Company burden distribution rules must be set up.
A labor entry must be posted to a billable account in the Account Ledger table (F0911).
The labor burden accounting entries must be posted to a billable account in the Account Ledger table.
The Bill Burden field in the Billing System Constants table (F48091) must be set to process labor burden.
Alternatively, in JD Edwards EnterpriseOne Contract Billing only, you can manually set up billing lines for labor burden. Creating labor burden transactions this way enables you to display billing lines for labor burden separately from the associated billing lines for labor.
You use a billing constant to control whether burden entries from JD Edwards EnterpriseOne Payroll are processed for the workfile. The system calculates labor burden transactions when payroll journal entries are created. You can process labor burden within the billing system only in conjunction with its associated labor workfile transaction.
The eligibility code for labor burden transactions must be compatible with the eligibility code for the associated labor workfile transaction. Specifically, the system prevents the eligibility code for a labor workfile transaction from being more restrictive than the eligibility code of its labor burden workfile transactions.
For example, if the labor burden transaction for a labor workfile transaction is eligible for revenue and invoicing, but the labor workfile transaction is eligible only for invoicing, the system overrides the eligibility code for the burden transaction with the eligibility code for the labor workfile transaction.
Payroll calculates these types of labor burden:
Labor Burden Type |
Description |
|---|---|
Actual burden |
The actual cost of payroll taxes, insurance, and fringe benefits. The system calculates the burden for the actual costs that are associated with each employee's timecard. |
Flat burden |
An estimated burden amount that the system derives from the direct labor costs. The system calculates the burden on a timecard-by-timecard basis as a percentage of the labor costs. |
When labor burden transactions are associated with a labor workfile transaction, the system displays an X in the Labor Burden field for that workfile transaction on the Work With Workfile form (W4812C). You use the Labor Burden Info (labor burden information) option on the Row menu to view these workfile transactions.
After the original payroll transactions have been processed, the system does not retrieve any new labor burden transactions that are calculated for the transactions. For example, if you reverse the flat burden amount and calculate the actual burden amount for the original payroll transactions, the system does not retrieve the new labor burden transactions.