Budget Labor Limits driver

Overview

Use the Budget Labor Limits driver to top-out rates when needed.

The Max Cap rate set within Driver 26 Budget Labor Limits is recognized as the threshold trigger to begin the lump sum calculation when met during the budget process.

Settings

Open the driver and complete the driver settings.

  • Enter any applicable Job Code and its corresponding rate limit. If a Job Code has a rate limit of $20.00 per hour and the 5% increase exceeds that amount, the rate is capped at $20.00 per hour.
  • The MaxRate determines if a lump sum payout should be calculated when a salary increase is applied to employee rates. To enable the lump sum payouts:
    • Open the 02 Budget Labor Configuration driver.
    • Find the Lump Sum Payout line in the Standard Budget Pay Types section of the Global or Budget Group you wish to update.
    • Select a valid PayType and Account, which is used to save the lump sum calculations.
    • To disable the lump sum payouts, set the PayType to Not Used.
  • Use the Mid Rate (MidPoint) when you add a new Job Code to a departmental budget. The Budgeted Rate defaults to the rate listed, if available.
  • The Mid and Max Rate values should reflect the rates to use in the new budget year. In most cases, the Human Resources department should adjust these values to include the range updates related to merit and market assumptions.
  • The Max Rate set on the LaborLimits tab is recognized as the threshold when calculating the lump sum.