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 pays for overtime, night or weekend work. It needs two percentages: what these hours cost, and what share of the working time they make up. You estimate the share, and a factor on the account adjusts that estimate for one person. 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. The budget changes only when you apply a definition to an account. KOSMA then posts the resulting cost to a [collect-in account](/kb/article/how-collect-in-accounts-work), where it adds these costs up. A collect-in account cannot have subaccounts of its own.
You always apply fringes and supplements to a whole account, never to a single subaccount. On an account with subaccounts, you tick which subaccounts the calculation covers.
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.
For a supplement, you enter two numbers in Settings, and neither follows from the other:
- **Markup On Wage %** is what one hour with the premium costs, as a percentage of a normal hour, a whole number up to 1000. The wage does not pay overtime beyond the weekly hours, so for overtime you enter the full rate, for example 125. The wage already pays night hours, so for those 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 it, 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**.
Example: 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 |
If contributions are also due on supplements, turn on **Automatically add wage fringes to supplements** for that account. You do this when you [apply fringes and supplements](/kb/article/apply-fringes-and-supplements); Settings has no switch for it. When the switch is on, KOSMA calculates fringes on the account's total plus its supplements. In the example above, Social Security at 12% then costs 1,350 (12% of 11,250) instead of 1,200. The supplement amounts stay the same. When the switch is off, KOSMA uses the account's total only.
On new accounts, the switch starts off. In the budget of the Demo Project and on accounts brought over from KOSMA 2, the previous version, it starts on.
On an account with subaccounts, such as preparation, shoot and wrap, you tick subaccounts separately for fringes and for supplements. Contributions are usually due for the whole engagement, while overtime often happens only during the shoot. You can then tick all three 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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