Budgeting
You know why a wage fringe needs one percentage and a wage supplement needs two plus a factor, and you can tell which of the two a cost belongs to.
A wage fringe is an employer contribution that KOSMA calculates as a fixed percentage of a wage. A wage supplement is a premium for overtime, night or weekend work. You estimate how much of that work arises, so a supplement needs two percentages and a factor on each account. Both add cost to a wage without changing the wage itself.
You define fringes and supplements once per budget in [Settings](/kb/article/how-settings-work), on the **Fringes** and **Supplements** tabs. Then you apply each definition to the accounts it concerns. A definition changes the budget only when you apply it. KOSMA adds the resulting cost to a [collect-in account](/kb/article/how-collect-in-accounts-work). You apply fringes and supplements to an account, never to a single subaccount. On an account with subaccounts, you tick which subaccounts the calculation covers. An account that collects fringes or supplements cannot have subaccounts.
A wage fringe covers contributions set by law or by a collective agreement, such as social security, health insurance and pension. The rate is the same for everyone, so a fringe has one rate in Settings: **Percentage**, with up to two decimals. A fringe named Social Security at 12% costs 12% of the wage on every account you apply it to. KOSMA calculates a fringe on the account's total. On an account with subaccounts, it uses the subaccounts you ticked for fringes. KOSMA never calculates a fringe on another fringe.
Because you estimate a supplement, you enter two numbers in Settings, and neither follows from the other:
- **Markup On Wage %** is what the hours the premium covers cost, as a percentage of a normal hour, a whole number up to 1000. If the wage does not pay these hours, as with overtime beyond the hours of the weekly wage, you enter the full rate, for example 125. If the wage already pays them, as with night hours, you enter the premium alone, for example 25. - **Worktime %** is the share of the working time the premium applies to, a whole number up to 100. For 5 overtime hours in a 50-hour week, you enter 10%.
**Worktime %** is one estimate for the whole production. Where one person's engagement differs from this estimate, you correct it on that person's account with **Factor**. You set **Factor** when you apply the supplement. If you leave **Factor** empty, KOSMA uses 1. KOSMA multiplies the account's total, or the total of the subaccounts you ticked for supplements, by **Markup On Wage %**, **Worktime %** and **Factor**. On an account with a wage of 10,000, a markup of 125% and a worktime of 10% add 1,250. If the person on this account works twice as much overtime as the definition assumes, a factor of 2 raises the supplement to 2,500. For more on the factor, see [what the factor does](/kb/article/what-the-factor-does).
| | Wage fringe | Wage supplement | | ------------------------------- | -------------------------------------------- | ---------------------------------------- | | What it covers | a contribution set by law or by an agreement | a premium for unusual working conditions | | Percentages in Settings | **Percentage** | **Markup On Wage %** and **Worktime %** | | Correction on one account | none | **Factor** | | Subaccounts it is calculated on | the ones ticked for fringes | the ones ticked for supplements |
Whether KOSMA also calculates fringes on an account's supplements depends on **Automatically add wage fringes to supplements**. You set it per account when you [apply fringes and supplements](/kb/article/apply-fringes-and-supplements); Settings has no switch for it. On every account you create, the switch is off at first. KOSMA then calculates fringes on the account's total only. In the budget of the Demo Project and on accounts that came from KOSMA 2, the switch is on at first. When it is on, KOSMA calculates fringes on the account's total plus its supplements. KOSMA does not change the supplement amounts. In the example above, Social Security at 12% then costs 1,230 (12% of 10,250) instead of 1,200. If contributions are also owed on the premiums, turn it on.
On an account with subaccounts, such as preparation, shoot and wrap, fringes and supplements each keep their own ticks. Contributions usually run for the whole engagement, while overtime often falls only in the shoot. On that account, you can then tick all three subaccounts for the fringe and only the shoot for the supplement.
You also define extra costs, such as per diems, hotels or travel, in Settings and apply them to an account. Their amount is a quantity times a price and never depends on the wage. See [what extra costs are](/kb/article/what-extra-costs-are).
To set up a fringe, see [define wage fringes](/kb/article/define-wage-fringes). To set up a supplement, see [define wage supplements](/kb/article/define-wage-supplements). To put both on an account, see [apply fringes and supplements](/kb/article/apply-fringes-and-supplements).
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