Why Set a Labour Burden?
The Labour Burden in FlexiBake represents added costs incurred above base wages—such as vacation pay, workers’ compensation, and employment insurance. By setting a Labour Burden, your costing will reflect true payroll expenses across all recipes and products, resulting in improved financial reporting and pricing decisions.
Tip: Labour Burden is typically entered as a percentage, based on your organization’s typical overhead as compared to annual wages.
Setting the Labour Burden Rate
- Open the Administration menu from the top menu bar and select FlexiBake Preferences.
- Select the Accounting tab.
- Find the Labour Burden field.
- Enter your Labour Burden as a percentage (e.g., enter 10 for a 10% burden).
- Click OK to save your changes.
Note: The Labour Burden rate will now be included in all recipe and product cost calculations, automatically adjusting totals to reflect your true average payroll overhead.
Calculating Your Labour Burden
To determine your Labour Burden percentage:
- Include employer contributions to government programs, paid leaves, insurance, etc.
- Divide total annual payroll burden (excluding direct wages) by total annual gross wages.
- Use this ratio as your Labour Burden percentage in FlexiBake.
Keeping Labour Calculations Accurate
- Review and update your Labour Burden periodically (quarterly or annually) to reflect changing employment costs.
- Ensure you are not double-counting labour on recipes and products—track at only one level per process.