Internal Trade Rates are the Labor Cost Rates used in your company that you can plug directly into an Estimate or attach to a Unit Cost that you have developed and keep stored within your Production Cost Book.
- The Default Markup Set indicates which is the Default Markup Set in use and being applied to all the records in the Internal Trade Rates record set to compute the Hourly Billing Rates.
- In List View Internal Trade Rate records can be sorted by clicking on the Trade/Position, Base Rate, True Labor Cost, Hourly Billing Rate, and Frequency Buttons. A small Chart Icon will appear next to the last button used for sorting the records indicating the active sort order criteria.
The button and non-button labels
are described as follows:- Trade Position is a Unique Name for the record
- Base Rate is the actual wage you would pay an individual in that position.
- True Wage is that wage adjusted for that position productivity. ((RATE Base Wage x Actual Paid Hours) / Actual Billable Hours) which gives the user the real True Wage cost for that position
- True Comp shows the Workers Comp rate for that position as a percentage and the hourly True Comp cost based on the productivity for that position.
- True Burden shows the True Burden Cost as a percentage of the True Wage and the actual Hourly Burden Cost for that position based on the productivity for that position.
- A. To select the particular Internal Trade Rate click on the "Clipboard" button and the UniqueID for the record will copied to the 360 Difference internal clipboard and you can then paste it into a Unit Cost your developing in the Production Cost Book or into a Line Item within an Estimate and it will automatically look up the True Labor Cost associated with that the UniqueID. Likewise if you are putting this Internal Trade Rate information into a Invoice it will look up the Hourly Billing Rate. The program is set up to know whether you need the information as a True Labor Cost or as the Hourly Billing Rate.
- B. Clicking on the Drill Down Button opens the Detail/Edt View for the selected Internal Trade Rate record. The Detail/Edt View is where you develop the actual True Labor Cost and Hourly Billing Rates for each Trade/Position record. If you don’t want to use the Labor Cost Worksheet to develop you costs you can "opt out" by selecting the Use Developed Cost from this Worksheet No radio button and the record will instead use the figure in the Flat Rate Field as your Labor Cost.
The records in this file can be customized by adding different trade profiles for the different pay rate scales and numbers of positions within your company. You can have different labor rate profiles for different levels of carpenters, painters, and helpers in a small to mid-sized company. If you’re a solo operator you can have just one single trade profile to reflect what you want to pay yourself for the labor you perform and use that as the labor rate basis in your Internal Production Costs cost book.
In the Internal Trade Rates file you can tweak the labor burden costs to reflect and account for:
- The anticipated ratio of billable to non-billable hours worked by that position.
- Paid Holidays, Paid Sick Days, and Paid Vacation
- Any variation or changes in the standard labor deductions and payments such as FICA, and Unemployment, etc.
- The differences in Workers Comp Rates between the different trade functions performed. For example: the Worker Comp rate for a "Carpenter-A (finish)" would be different than the Worker Comp rate for a "Painter-A"
- It can be adjusted for Health Insurance, Retirement and other benefits
- Other possible Variable Overhead costs such as: Production Supervision
- Vehicle payments (or vehicle compensation allowance)
- Vehicle insurance
- Gas & Oil expenses
- Vehicle Maintenance
- Cell Phones
- Small Tools and Equipment
- Equipment Maintenance
- Work Clothing
- and any other expenses that you want to classify as part of you Labor Cost.