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Convert EC to wages

ysshopper

December 31, 2014 16:39

Hi, team, I prefer to report W&S instead of EC in my analysis. I have a question about the conversion ratio(EC_Income) in the table "Convert_IMPLAN440_Employment_to_FTE_and_Income_to_EC(1).xls": If I divide Labor Income by the ratio, it will give me only W&S (i.e, not including benefits and payroll tax), is it right? Thanks!

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3 comments

IMPLAN Support
January 02, 2015 17:58

Hi Yan, To separate out the benefits and payroll taxes in Employee Compensation, you take the EC number by the ratio to get your Labor Income. Wage & Salary will always be less than Employee comp so the the number used to divide will be >1.0. Thanks!

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ysshopper
January 05, 2015 15:48

Thanks for your reply. Just want to confirm: If I run the scenario, and get the impact summary results, based on Labor Income impact, I can calculate "wages&salary = LaborIncome / ratio (i.e, EC_income ration >1.0) by industry(sector) For example, for sector 115, impact on total labor Income= $19,8000,000, and EC ration =1.68, so the wages&salary impact = $19,8000,000 /1.68 =11,785,714

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IMPLAN Support
January 05, 2015 21:18

Hi Yan. Your equation is correct however I believe that you are just missing a zero in your answer. As $198,000,000/1.68 = 117,857,142. Thanks!

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