Customizing an Event
I have a question about customizing an event. I have data pertaining to a firm's expenses, employment and total compensation and I want to enter all these in instead of use expenses to estimate the others. However the expenditures data I have contains employee compensation along with all the other business expenses. Do I need to back out the employee compensation values out of the expenses to accurately enter them so I'm not double counting or do they act independently of one another when doing the final impact?
Thanks for your help.
Was this post helpful?
-
IMPLAN SupportHi Brian, Thank you for your post! You are correct, in that you will need to back out the business expenses from your value to get the employee compensation. Employee Compensation includes is the total payroll cost of the employee paid by the employer. This includes wage and salary, all benefits (e.g., health, retirement) and payroll taxes (both sides of social security, unemployment taxes, etc.). Industry Sales is the total value and the software does make a split of this value for Intermediate Expenditures and Value Added so that needs to be the Gross Sales value. You will want to list compensation component again separately in the Employment Compensation so you delimit what portion of the total sales is your Employment Compensation and you can zero Proprietor Income (PI) (presuming the firm is not a sole proprietor or partnership). Thanks!0 -
Thank you very much. This is exactly what I was thinking but I wanted to get confirmation before moving forward.0
Please sign in to leave a comment.
Comments
2 comments