chrisuklfc
New member
- Joined
- Apr 9, 2020
- Messages
- 1
Hello all,
I am challenged with a problem at work (I'm in the Accounting team), in which we are seeking to identify the Full Time Equivalent (FTE) at which people could work which equates to the same cost to the company as a certain subsidy that has been released by the government. This will see people's working hours reduced and put on stand down (i.e., not working) for the balance of the working week. The benefit is that people stay connected with the company through the company utilising the government subsidy, rather than an increased number of employees being made redundant, in the hope that there is work for them after the COVID-19 recovery.
Below are the particulars:
- The government subsidy equates to $39,000 per year, at $3,250 per month.
- There are oncosts (i.e., costs above the base salary) associated with paying the employees of 27.5% (State Payroll Tax, Superannuation, Annual Leave accruals and some other industry specific oncosts). These oncosts are multiplied against the base salary and all apply when the employee is working (e.g., if they are working 0.4 FTE (two days / week), the 27.5% applies to the gross salary * 0.4)
- The Annual Leave oncost is the only oncost that applies to the portion of salary when someone is not working (e.g., in the above example the annual leave accrues against the employee's base salary for the three days not worked, at a rate of 7.69% (4 weeks annual leave allowance per year / 52 weeks) of the base salary
I have produced an Excel table with multiple rows based on various scenarios FTE working (0 FTE up to 0.9 FTE) scenarios. However, this requires me to input the individuals' salaries each time to arrive at the FTE level at which we break even on the employee vs the government subsidy. There are multiple people (c. 100) being assessed in this way, therefore I would prefer a column to be added to my master list of people, which identifies the FTE at which the cost of worked time including oncosts plus the annual leave oncost for the non-worked time = $39,000.
Any help with this would be most welcomed and gratefully received.
Yours faithfully
Chris
I am challenged with a problem at work (I'm in the Accounting team), in which we are seeking to identify the Full Time Equivalent (FTE) at which people could work which equates to the same cost to the company as a certain subsidy that has been released by the government. This will see people's working hours reduced and put on stand down (i.e., not working) for the balance of the working week. The benefit is that people stay connected with the company through the company utilising the government subsidy, rather than an increased number of employees being made redundant, in the hope that there is work for them after the COVID-19 recovery.
Below are the particulars:
- The government subsidy equates to $39,000 per year, at $3,250 per month.
- There are oncosts (i.e., costs above the base salary) associated with paying the employees of 27.5% (State Payroll Tax, Superannuation, Annual Leave accruals and some other industry specific oncosts). These oncosts are multiplied against the base salary and all apply when the employee is working (e.g., if they are working 0.4 FTE (two days / week), the 27.5% applies to the gross salary * 0.4)
- The Annual Leave oncost is the only oncost that applies to the portion of salary when someone is not working (e.g., in the above example the annual leave accrues against the employee's base salary for the three days not worked, at a rate of 7.69% (4 weeks annual leave allowance per year / 52 weeks) of the base salary
I have produced an Excel table with multiple rows based on various scenarios FTE working (0 FTE up to 0.9 FTE) scenarios. However, this requires me to input the individuals' salaries each time to arrive at the FTE level at which we break even on the employee vs the government subsidy. There are multiple people (c. 100) being assessed in this way, therefore I would prefer a column to be added to my master list of people, which identifies the FTE at which the cost of worked time including oncosts plus the annual leave oncost for the non-worked time = $39,000.
Any help with this would be most welcomed and gratefully received.
Yours faithfully
Chris