Payroll Budget Template
Allocation of Payroll Budget
Whether it is a small or big company, it all involves employees or workers in order to support the system and keep the business running. As a company owner or Human Resource (HR) manager, the payroll of everyone working in the company becomes a major concern. Therefore you need a control system for your payroll. The best way to do it is through the payroll budget.
Payroll budget is a written form which is a key part in the annual budget and used by HR managers to formulate salary expense and hiring plans. In addition, all employee-related expenses such as taxes and benefits are formulated in the payroll budget.
Companies around the globe use payroll budgets to securely develop a detailed annual salary, benefits, and tax budget from bottom-up manner. Payroll budget also enables companies to reduce missing employee expense targets which may lead to great impact on profitability.
Sample of Payroll Budget :
If you are in a service-based company where labor cost is considerate to be main expenses, payroll budget can be as much as 50% of the whole HR budget. On the other hand, if you are in a product or goods business, the payroll budget can be lower than 30% whereas the main budget consumption will be on machineries and fixed assets.
Payroll Budget Template | word – download