What is a Employee Tax and Benefit Budget for a Retail Company?

Employee Tax and Benefit budgets are considered an important component of a budget model and are often used by retail chains and store managers to estimate detailed staff related expenses for the budget. Some of the key functionality in this type of model is that it automatically calculates workforce costs such as FICA, FUTA, SUTA, fringes, pensions, profit sharing and so on. It includes both exempt and non-exempt employees. You find an example of this type of model below.

Purpose of Employee Tax and Benefit Budget Models

Retail companies use Employee Tax and Benefit Budget Models to automate otherwise tedious cost calculations for the staff budget. When used as part of good business practices in a Financial Planning & Analysis (FP&A) department, a company can improve its budget accuracy and ease of creating multiple scenarios as well as reduce the chances that calculation mistakes occur in the budget model.

Employee Tax and Benefit Budget Model Example

Here is an example of Budget Report for Tax and Benefit Calculations for a Retail company.

Employee Tax and Benefit Budget Example for a Retail Company

Employee Tax and Benefit Budget Example for a Retail Company

You can find hundreds of additional examples here

Who Uses This Type of Model?

The typical users of this type of model are: HR managers, CFOs, budget managers.

Other Models Often Used in Conjunction with Employee Tax and Benefit Budget Models

Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Employee Tax and Benefit Budget Models, along with sales and other operating expense budgets, capex, cash flow plans and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.

In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Cloud Solutions and More Examples