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Direct Burden Distribution Rules

Overview:

PENTA allows users to charge payroll burden in a couple of different ways: The Direct Burden Distribution approach and the Overhead Distribution Rule approach

The Direct Burden Distribution window charges burdened payroll costs to jobs, fixed assets, accounts, and work orders as you incur them. This approach usually results in several charges early in the year and few later, because many taxes are levied only up to a certain wage amount which the employee reaches before the year ends. The Overhead Distribution Rule window spreads these charges out evenly over the year so that all of your jobs share the cost.

Direct Burden Distribution rules can be set up at the Legal Entity OU level or the Pay Group level.

Benefits:

  • Allow users to charge payroll Burden on an actual basis; to the same distributions as time is charged.
  • Provides more accurate reporting of Job Cost
  • Allows for the burdening of FICA, FUTA, PL, SDI, SUT, SUI and WC taxes
  • Allows for different burden rules based on distribution type, and OU or Pay Group

Roles:

  • Payroll Manager
  • Payroll Clerk
  • Controller

Additional Content

Location:

  • Payroll> Setup> Taxes> Direct Burden Distribution

Video:

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