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How to track labor costs against your project budget

Turn approved hours into labor costs on the project budget, control it per person, and export hours for payroll.

Written by Handoff Support

Add tracked labor costs to project budgets

Overview

Approved time tracking hours can be added directly to project budgets as labor costs. This lets you compare estimated labor with actual crew costs as work is completed.

Labor costing is off by default. You can enable it for your organization, control whether individual team members are included, and export filtered time entries for payroll.

Turn on labor costing

  1. Open Time tracking settings.

    Select the gear icon in the Time Tracking header.

  2. Turn on Add labor hours to project budgets.

  3. Select Apply changes.

You can also enable this setting from the Add time tracking to your project budgets banner on the Timesheet.

View tracked labor on a project budget

  1. Open the project.

  2. Go to the Budget tab.

  3. Find a line item marked Labor.

    The Labor pill identifies a line item that includes tracked labor costs.

  4. Select the line item.

    Open the line item's panel to view the individual shifts under its linked expenses. Time tracking entries are marked Timesheet.

Include or exclude one person

You can control whether an individual team member's approved labor costs are added to project budgets.

  1. Open Time Tracking.

  2. Select Team Management.

  3. Select Manage next to the team member.

  4. Turn Include hours in budget on or off.

    When enabled, that team member's approved labor costs are added to their projects.

  5. Select Save.

Export hours for payroll

  1. Open the Timesheet.

  2. Set your filters.

    Filter the Timesheet by the people, projects, and date range you need.

  3. Select Export.

  4. Choose an export format.

    Select Export as CSV or Export as PDF.

Additional Notes

  • Only approved hours are added to project budgets. Pending and rejected entries do not contribute to labor costs.

  • An hourly rate is required to calculate labor cost. If a time entry does not have an hourly rate, it contributes no cost. Set hourly rates in Team Management before crew members begin tracking time.

  • Timesheet labor costs cannot be deleted directly from the budget. Correct or delete the underlying time entry instead.

  • Approved subcontractor labor is included. Approved subcontractor labor costs count toward the project alongside your crew's labor.

  • Labor cost (BvA) reflects the current Timesheet filters. It includes completed entries within the selected filters and is not the project's lifetime labor cost.

  • Tracked hours are for internal costing only. They are used for project budgets and cost-vs-actual reporting and do not flow into client invoices.

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