Direct Payroll Costs Definition | Law Insider (2024)

Direct Payroll Costs

means, with respect to each GGP Employee providing a particular Service, the applicable hourly rate set forth on Exhibit I.

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Direct Payroll Costs

means, with respect to any Leased Employee and without duplication, the gross amount of all (a) salary and wages earned during the Employee Leasing Term, (b) benefits costs incurred during the Employee Leasing Term (including any payments for accrued vacation and sick leave, regardless of whether such accrued vacation and sick leave was accrued prior to, or during, the Employee Leasing Term), and (c) all applicable fees and taxes owed to third parties as a result of the employment of such Leased Employees during the Employee Leasing Term (including, without limitation, federal, state and local income tax withholding, contributions pursuant to the Federal Insurance Contribution Act and the Federal Unemployment Tax Act, workers’ compensation, unemployment insurance, and other withholding or payments required by federal, state or local law or regulations).

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Direct Payroll Costs

means the wages or salaries (including taxes and employee benefits, but excluding therefrom expenses of the computer information service group and expenses of other support groups, if and to the extent such expenses are included as general overhead expenses pursuant to subparagraph (c) below) paid by Manager or its Affiliates to their off-site personnel computed on the basis of the hours of service provided by such personnel in performing Manager's obligations under this Agreement as indicated by written records of such time kept on a regular and consistent basis.

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Examples of Direct Payroll Costs in a sentence

  • Costs for all research contracts, commercial activities etc fall into 3 categories: • Direct Payroll Costs – This includes core staff members partially attached to projects (Directly Allocated) and staff members employed to work on a specific project (Directly Incurred).• Other Direct Costs – Other direct costs covers all directly attributable expenditure such as specific travel, fieldwork, equipment etc..• Indirect Costs – Costs incurred by the University which cannot be directly attributed.

  • FunderOverhead RateExceptions / NotesPublic Works Government Services Canada(PWGSC)Allowable overhead costs are: (i) maximum of 65% applicable to Direct Payroll Costs for on-campus work;Costs incurred by the university or college that have no direct bearing on the research activity are not acceptable as direct chargesagainst Canada research contracts.

  • The 1996 Report uses AVCC ‘current financial data’ to estimate the infrastructure costs, which are deter- mined as a multiple of the Total Direct Payroll Costs and distinguished by whether the activity is labora- tory (multiplier of 1.25) or non-laboratory (multiplier of 0.92) based.

  • Engineer @ =$0.00 Chief Inspector @ =$0.00 Inspector @ = $0.00Subtotal $0.00 Total Direct Payroll Costs $15,681.33Sheet 2 of 4 Project No. 87 U-0164-01 City of Derby Sedgwick County Summary Total Direct Payroll Costs City EngineerHours 27 @Rate $46.48 =Extension $1,254.96City Proj.

  • Department participation in Direct Payroll Costs submitted under this Agreement will not exceed the above.


More Definitions of Direct Payroll Costs

Direct Payroll Costs

means, with respect to each GGP Employee providing a particular Service, the applicable hourly rate set forth

Direct Payroll Costs

means, with respect to any Leased Employee, the gross amount of all salaries and wages, employee benefit program costs and other compensation with respect to such Leased Employee and all applicable fees, taxes, and other amounts owed to third parties as a result of the employment of such Leased Employee, including federal, state and local income tax withholding, contributions pursuant to the Federal Insurance Contribution Act and Federal Unemployment Tax Act, workers’ compensation, unemployment insurance, other withholding or other payments required by federal, state or local law or regulations, and all payments to applicable pension and welfare plans and other employee fringe benefit outlays, including but not limited to, direct premiums to Plans and claims for self-funded plans on an individual level or, if required by the design of the relevant Plan, such benefit costs as GXS reasonably calculates.

Sample 1

Direct Payroll Costs

means, with respect to any Leased Employee or Former Leased Employee, (i) the gross amount of all salaries and wages, including severance pay (if applicable) and vacation or other paid time-off, (ii) the gross amount of any bonus, commissions or other incentive compensation payable in cash (other than any compensation or other amounts payable pursuant to the GGP Key Employee Incentive Plan), (iii) employee benefit costs (in accordance with the methodology set forth in Exhibit A), (iv) amounts payable by an employer pursuant to federal, state or other workers’ compensation, unemployment insurance, other payments required by federal, state or local law or regulations, including employer contributions

Direct Payroll Costs

shall have the meaning set forth in Section 4.10.

Sample 1

Direct Payroll Costs

means, with respect to any Leased Employee, (x) an amount calculated using a rate (the “Daily Rate”) per business day (or portion thereof) for which the Leased Employee is provided equal to an amount ranging from US$400 to US$800, based on the seniority of the applicable Leased Employee and (y) the gross amount of all vacation pay, employee benefit program costs and other compensation with respect to such Leased Employee and all applicable fees, taxes and other amounts owed to third parties as a result of the employment of such Leased Employee, including any income tax withholding, contributions to any workers’ compensation, unemployment insurance, other withholding or other payments required by applicable law or regulations, and all payments to applicable retirement and welfare plans and other employee fringe benefit outlays to the extent such amounts are not covered by the Daily Rate. Prior to the provision of any such Leased Employee, the Provider will inform the Recipient of the seniority of such Leased Employee and the applicable Daily Rate. The Provider may at any time, upon two weeks’ notice, change the Daily Rates applicable to any Leased Employees (based upon a good-faith determination that Provider’s payroll costs have increased) by an amount equal to 110% of such increase.

Sample 1

Direct Payroll Costs.

(as defined in Section 5.1(a) hereof), plus all "Indirect Payroll Costs" (as defined in Section 5.1(b) hereof), plus the "Owner's Share" (as defined in Section 5.1(c) hereof) of the general overhead expenses of Manager and its Affiliates. Manager shall only be entitled to compensation as and to the extent set forth in this Section 5.1 and Section 5.2 hereof. Without limitation on the generality of the foregoing, neither Manager nor any Affiliate of Manager shall be entitled to any leasing commissions in connection with the Shopping Center, but Manager shall be entitled to recover the Management Expenses relating to the leasing of space in the Shopping Center. Manager shall not enter into a general brokerage or leasing agreement with respect to the leasing of the Shopping Center. Such reimbursem*nts shall be made pursuant to the following terms and conditions:

Sample 1

Direct Payroll Costs

means, with respect to any Leased Employee or Former Leased Employee, (i) the gross amount of all salaries and wages, including severance pay (if applicable) and vacation or other paid time-off, (ii) the gross amount of any bonus, commissions or other incentive compensation payable in cash (other than any compensation or other amounts payable pursuant to the GGP Key Employee Incentive Plan), (iii) employee benefit costs (in accordance with the methodology set forth in Exhibit A), (iv) amounts payable by an employer pursuant to federal, state or other workers’ compensation, unemployment insurance, other payments required by federal, state or local law or regulations, including employer contributions pursuant to the Federal Insurance Contribution Act, and (v) costs incurred upon the exercise of employee option awards outstanding as of the Plan Effective Date, including the fair market value of any stock delivered upon the exercise of such options.

Sample 1

Direct Payroll Costs Definition | Law Insider (2024)

FAQs

Direct Payroll Costs Definition | Law Insider? ›

Direct Payroll Costs means, with respect to any Leased Employee, the gross amount of all salaries and wages, employee benefit program costs and other compensation with respect to such Leased Employee and all applicable fees, taxes, and other amounts owed to third parties as a result of the employment of such Leased ...

What is the definition of payroll costs? ›

Payroll Costs means all direct employee costs consisting of wages, employer contributions for taxes, workers' compensation insurance premiums, unemployment taxes, statutory disability, group life insurance and other similar employee benefits, provided, that the aggregate payroll taxes and all employee benefits ( ...

What is not an employer payroll cost? ›

The answer is (d), Federal and state income taxes. Income taxes are only paid by the employee, although it is you—the employer—who deducts them from your employee's wages. Confusing, huh?

What is included in total payroll costs? ›

Payroll costs consist of all costs incurred by an employer to compensate its employees. These costs include employee compensation and the employer-paid portion of all payroll taxes. The employer-paid portion of these taxes encompasses FICA taxes and government unemployment insurance programs.

What is the difference between labor cost and payroll cost? ›

Unlike payroll expense, the cost of labor also includes the amounts paid to contract labor. An independent contractor (also called a freelancer) provides work for your business when needed, but they are not an employee. They are paid on a contract basis, using an IRS Form 1099 to report the payments.

What is classified as a payroll expense? ›

Payroll expenses represent the costs associated with paying employees for their work, reflecting the gross pay and any relevant withholdings and payroll taxes. Data collection, analysis, and maintenance are necessary for businesses to manage their payroll expenses effectively.

What is the true cost of payroll? ›

Calculate an employee's labor cost per hour by adding their gross wages to the total cost of related expenses (including annual payroll taxes and annual overhead), then dividing by the number of hours the employee works each year. This will help determine how much an employee costs their employer per hour.

Which of the following are employee payroll costs? ›

What Are Payroll Costs?
  • Base pay (whether paid on an hourly, piece, salary, or other basis)
  • Bonuses and commissions.
  • Paid time off and other employee leave.
  • Employer's portion of payroll taxes.
  • Employee benefits contributions.
  • Workers' compensation insurance.
  • Payroll administration costs.
Jan 25, 2024

What are non payroll expenses? ›

Non-Payroll Operating Expenses means the aggregate net income of Company plus [i] the amount of all payroll expenses, benefits, and payroll taxes; plus [ii] all non-operating expenses including, but not limited to, all capital improvements, rents, interest, straight-line rent adjustments, depreciation, amortization, ...

What is the difference between payroll expenses and payroll liabilities? ›

What Are Payroll Liabilities Vs Payroll Expenses? As we've already discussed, payroll liabilities are any outstanding payments you owe related to the costs of running payroll. Payroll expenses, on the other hand, are the payments you make to cover your payroll costs.

How to calculate the cost of payroll? ›

In summary, add together the employee's gross annual pay, annual payroll taxes, and total additional annual expenses to get the total annual employee cost. You can further divide this by months or hours to determine the employee's total monthly or hourly cost.

Are employee benefits included in payroll costs? ›

Payroll cost refers to the total amount of money that a business spends on employee salaries and benefits.

How do you calculate payroll costs? ›

Calculate an employee's labor cost per hour by adding their gross wages to the total cost of related expenses (including annual payroll taxes and annual overhead), then dividing by the number of hours the employee works each year.

What is the basic definition of payroll? ›

In simple terms, payroll can be defined as the process of paying a company's employees. It includes collecting the list of employees to be paid, tracking the hours worked, calculating the employee's pay, distributing the salary on time, and recording the payroll expense.

How to categorize payroll fees? ›

Here are a few possibilities:
  1. Cost of Goods Sold. If the business sells products or services, then the payroll fees can be considered a cost of goods sold. ...
  2. Operating Expense. Another way to categorize payroll fees is as an operating expense. ...
  3. Non-Operating Expense.

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