Page 178 - Budgeting for Managers

Budgeting and Human Resources
mitments put you over budget, then you’ll have problems man-
aging the department.
Each job position will be defined with a pay rate, usually an
annual salary or an hourly wage. Before going any further,
make sure that rules for work hours, holidays (standard and 161
floating), vacations, sick days, overtime, comp time, flex time,
and personal leave time are all clear. If not, you could end up
with excess expenditures or with misunderstandings that lead
to frustration and employee dissatisfaction. The business cal-
endar and conversion spreadsheets from Chapter 3 will help
you work this out.
Once the schedule and pay rates are clear, you will need to
have the human resources or payroll department work out the
payroll tax liabilities, benefits, and other deductions.

Work hours The rules governing hours of work, including
start time, end time, breaks, lunch, shifts, and days.Work
hours are subject to corporate rules, union agreements, and
labor laws.
Holidays Days that all or some employees in a company do not
work, including legal holidays, extra days (such as the Friday after
Thanksgiving), and floating holidays used to allow employees to choose
when to take holidays.
Sick days Days that employees can take with pay due to personal or
family illness. Usually, these are accrued and employees get a certain
number of sick days per quarter or year worked.
Overtime Work hours beyond the normal for a work week. Usually
tracked for employees with an hourly wage, and perhaps paid at time
and a half.
Comp time Work hours beyond the normal for a work week.
Sometimes tracked for professional, salaried employees, allowing them
to take some time off to compensate.
Flex time Rules governing variations in start time, end time, and
length of lunch break.
Leave Extended time off, paid or unpaid, for rare events such as a
death in the family or the birth of a child. If unpaid, benefits continue
and the employee is guaranteed a job when he or she returns.