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Accruals, Accruals, Accruals

September 11, 2018

Cleaning Companies realise cost for each hour an employee works on-site. Let's look at an example...A Full Time Level 1 Cleaner works 76 hours in a two weekly period. At the current base rate of $ 20.21 they will be paid $ 1,535.96


However, the business has just "realised" the following additional costs which will at some point need to be paid out:


1 - Annual Leave Accrual

2 - Superannuation

3 - Payroll Tax

4 - Annual Leave on Annual Leave

5 - Superannuation on Annual Leave


Simply put, the true cost to the Business and Site is higher than just the Gross Pay. Looking at just Annual Leave, the employee has accrued 5.85 Hours of AL.


That means the business at some point will need to pay this out to the employee. Therefor the true cost to the site should also include $ 118.15 of AL Accrual Cost.


Templa CMS has now been modified to automatically accrue these very real costs..Get in touch to find out more..


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