Understand labor budgets

Labor budget shows how much you plan to spend on approved positions. It includes the budget for filled jobs and vacancies. Start with a position’s budget rate, then add benefits or other adjustments. Labor budget is part of Workforce Budgeting.

For the walkthrough, Patient Services Coordinator has a $70,000 yearly budget and a 20% benefits estimate. Its total yearly budget is $84,000. Avery fills the whole position, so all $84,000 belongs to the staffed part.

Employee pay is entered separately in Compensation. A budget rate does not change anyone’s salary.

Before you begin

The department filter shows only records your access allows.

Choose the date and departments

1. Open Labor budget > Overview.
2. Choose Budget date. For the walkthrough, use January 1, 2027.
3. Choose Outpatient Services under Department scope.
4. Wait for the result to finish updating.

The date tells FTE Tree which position details, assignments, budget rate, and adjustments to use. Hourly rates also use the annual-hours setting for that date. A future rate begins on its own start date; it does not change earlier dates.

On Labor budget > Positions, the table starts with the position, department, active and assigned FTE, and budget amounts. Choose Columns to include rates, job classifications, vacant FTE, or overassigned FTE, then choose Save columns. Your choices are saved separately from the positions list. If amounts are Unavailable, read the reason beneath the position; unavailable amounts are not zero.

Department scope means the departments to include. Selecting Outpatient Services also includes departments beneath it that you may view. Choose All departments I can view in the filter to return to every department you may view. The same label appears in the page summary.

Understand the summary

Budget utilization is Budget assigned ÷ Budget capacity × 100. Here, $84,000 ÷ $84,000 × 100 = 100%.

The summary adds the included positions. Read how many have complete information before using its money total. A subtotal may leave out positions that still need a rate or another required value.

Optional example: the position is only half filled

Keep the original Avery example. On a separate practice position with the same rate and benefits, imagine a half-time assignment: 0.5 FTE.

This example uses a percentage benefits rule. Fixed allowances can behave differently; adjustment calculations explains those options.

Optional example: two full-time people fill one full-time position

If two full-time assignments use the same one-person position, assigned FTE is 2, but approved FTE is still 1. This is called overassignment.

Using the same budget rate and percentage benefits, staffed budget becomes $84,000 × 2 = $168,000. The whole position budget stays $84,000. Vacancy impact is $0; FTE Tree does not turn the excess into a negative vacancy.

Review the assignments and approved position FTE. Budget calculations show their effect but do not fix the staffing records. An overassigned position also does not cancel the vacancy budget of another position.

Example: why the selected date matters

On a separate practice position, a $70,000 rate applies through June 30 and a $75,000 rate begins July 1. June 30 still uses $70,000; July 1 uses $75,000. The later rate does not rewrite the earlier one.

Review a position calculation

1. Open Labor budget > Positions and choose the budget date.
2. Open the position.
3. Check its department, job classification, schedule, and FTE.
4. Read whether the starting rate came from the position or its job classification.
5. For an hourly rate, check the annual hours used to convert it into a yearly amount.
6. Read the adjustment rows from top to bottom.
7. Compare the final amounts with your own calculation.

The table shows Budget capacity, Budget assigned, and Vacancy impact side by side. Each adjustment row shows what it adds or removes and the new total.

If the starting amount is wrong, check the rate, date, hours, and FTE. If only an adjustment is wrong, open Labor budget > Applied adjustments and review where and when that rule has been applied.

Choose Change budget date to return to positions and open the result for another date. If the position uses a job-classification rate or has no rate, an authorized budget manager can choose Actions > Add position rate. The form fills in the position and date, then returns here after saving.

A linked rate or adjustment can open the recorded value used by the calculation. If an earlier-value notice appears, compare that evidence with the result before choosing View the current entry to inspect or correct the current record. Do not change a correct current rate just to make it match an older report.

See budget rates for choosing a rate and budget adjustments for benefits, allowances, and overlapping rules.

What happens when budget data is missing

A blank amount means FTE Tree does not have enough information to calculate it. It does not mean the position costs nothing.

Budget input coverage shows how many selected positions have enough information. For example, if ten of twelve positions total $900,000, that is a subtotal for ten positions. The other two are still unknown.

While updating, the page can show its last successful result for reference. Wait for the current calculation before reviewing a recent change. The full total remains unavailable if some positions are incomplete.

Specific messages distinguish Needs Position setup, Needs employee setup, Needs adjustment setup, and Conflicting adjustments. Only affected positions lose their money amounts. Open Issues or budget troubleshooting to fix the missing information.

The Labor Budget Snapshot report also leaves incomplete amounts blank and explains why. Run it after the current calculation finishes.

Choose the detailed task guide

Compare budget with actual compensation

For Avery, the yearly budget is $84,000 and compensation is $72,000. The difference is $84,000 − $72,000 = $12,000. This is called Budget variance.

The percentage is $12,000 ÷ $84,000 × 100 = 14.29%. A positive amount means the staffed budget is higher than compensation. A negative amount means compensation is higher.

After the walkthrough’s 5% salary increase, compensation is $75,600. The remaining budget is $84,000 − $75,600 = $8,400, or 10%. In a separate example, compensation of $90,000 would exceed the same budget by $6,000, producing a −$6,000 variance.

The page shows Compared budget assigned, Actual annual compensation, Budget variance, and Positions compared. It compares only positions with both amounts available. Read Positions compared to see which were included or left out.

You need access to both financial areas for the same departments. The comparison stays unavailable while either result is updating. Follow any missing-information link before treating a partial comparison as the full result.

Run a report and check its amounts

1. Choose the budget date and department.
2. Wait for the current result.
3. Check Budget input coverage.
4. Open one position and read its calculation.
5. Choose Run labor budget report.
6. Review the completed report before downloading or sharing.

Run a new report after changing information. An earlier completed report keeps the amounts from its own run. Next, work out Avery’s compensation.

Optional practice: work out the yearly budget

For exercises that change records, use a separate practice organization and complete the preparation below.

Practice steps and checks

Open Patient Services Coordinator from Labor budget > Positions for January 1.

1. Check 1.0 approved FTE and 1.0 assigned FTE.
2. Check the $70,000 yearly position rate.
3. Find the Course benefits estimate adjustment.
4. Work out its amount: $70,000 × 20% = $14,000.
5. Add the rate and benefits: $70,000 + $14,000 = $84,000.

The page should show $84,000 Budget capacity, $84,000 Budget assigned, and $0 Vacancy impact. The next section explains those labels. If the rate or adjustment is missing, enter the rate or apply the benefits rule.

These are budget estimates. They do not record bills or payroll payments.