--- title: Workforce Planning description: Learn how to forecast Wages and Payroll Taxes --- [Skip to content](https://help.planguru.com/knowledge/planguru-app-online/workforce-planning#main-content) [![PlanGuru Help Center](https://help.planguru.com/hs-fs/hubfs/logo_PlanGuru_helpcenter.png?width=360&height=50&name=logo_PlanGuru_helpcenter.png)](https://help.planguru.com/knowledge?hsLang=en) - [Your Tickets](https://help.planguru.com/tickets-view) - [Sign out](https://help.planguru.com/_hcms/mem/logout) Open main navigation Close main navigation - [Your Tickets](https://help.planguru.com/tickets-view) - [Sign out](https://help.planguru.com/_hcms/mem/logout) - [Submit a Ticket](https://help.planguru.com/tickets-view/new) [Submit a Ticket](https://help.planguru.com/tickets-view/new?hsLang=en) Hello. What do you need help with? - There are no suggestions because the search field is empty. 1. [Help Center](https://help.planguru.com/knowledge?hsLang=en) 2. 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[Forecasting & Modeling](https://help.planguru.com/knowledge/planguru-app-online?hsLang=en#forecasting-modeling) # Workforce Planning ## Learn how to forecast Wages and Payroll Taxes     #### 👥 Workforce Planning – Wages & Payroll Taxes PlanGuru offers flexible ways to **budget and forecast payroll**, allowing users to model everything from high-level wage growth to detailed, employee-by-employee payroll and tax calculations.   --- ### 1️⃣ Overview You can approach payroll forecasting in several ways: - **High-Level Approach:** Apply a **Growth Rate** projection method to forecast wage increases (e.g., 3–5% annual growth). - **Driver-Based Approach:** Create custom **Assumptions & KPIs** logic, such as *Headcount × Average Salary* or *Hours × Rate*. - **Detailed Employee-Level Approach:** Model payroll for individual employees, including **automatic payroll tax calculations** that factor in wage limits. This tutorial covers the **detailed employee-level method**. --- ### 2️⃣ Define Payroll Taxes in Company Settings Before building payroll logic, define your payroll taxes at the **company level**. 1. From the home screen, click the ⚙️ **Settings** icon. 2. Select **Edit Company** → **Edit Payroll Taxes**. 3. Click **Add Tax**. 4. Enter: - **Tax Name** (e.g., FICA, Medicare, FUTA). - **Jurisdiction** (Federal or State). - **Rate** (e.g., 6.2% for FICA). - **Wage Limit** (e.g., $160,200). 5. Click **Save** to add it to the tax table. ![Screenshot 2026-09-16 at 4.08.29 PM](https://help.planguru.com/hs-fs/hubfs/Screenshot%202026-09-16%20at%204.08.29%20PM.png?width=536&height=312&name=Screenshot%202026-09-16%20at%204.08.29%20PM.png) Repeat for all applicable federal and state taxes. > 💡 You can create blended rates (e.g., “Federal Taxes”) or add individual state rates depending on complexity. --- ### 3️⃣ Build Employee Payroll Logic in Assumptions 1. From your model, click **Assumptions & KPIs → Add New Tab**. - Example: Name the tab **Employee Payroll**. 2. Add your first line: - **Description:** Employee 1 – Salary - **Projection Method:** Manual Entry → Allocate Annual Amounts - Enter the **annual salary** and let PlanGuru spread it evenly by month.   --- ### 4️⃣ Apply Payroll Tax Calculations 1. Add another line beneath the salary line → name it **Employee 1 – FICA Tax**. 2. Change the **Line Type** to **Payroll**. 3. Under **Projection Method**, select **Payroll Tax**. 4. Choose: - **Tax Type:** Federal or State - **Specific Tax:** FICA, Medicare, etc. - **Base Line:** The salary line you created earlier. PlanGuru automatically applies the correct percentage to salary amounts and stops when the **wage limit** is reached. Repeat these steps for all applicable taxes (Medicare, State Unemployment, etc.). --- ### 5️⃣ Combine & Total If multiple taxes (e.g., FICA + Medicare) feed into a single account: - Add a **formula line** that sums those amounts. - This total can then be **linked to the Wage & Tax expense accounts** on the Income Statement.   --- ### 6️⃣ Duplicate Logic for Additional Employees Once one employee’s logic is complete, you can **copy and replicate** it: **Option 1 – Copy & Paste Logic** 1. Highlight all employee lines. 2. Right-click → **Copy Logic**. 3. Paste below and rename each line. **Option 2 – Smart Grouping (Recommended)** 1. Ensure all line descriptions share a common prefix (e.g., “Employee 1 – ...”). 2. Highlight all related lines. 3. Right-click → **Add Group**. 4. Choose how many duplicates you’d like (e.g., 10 employees). 5. Rename each employee. Smart Groups automatically create **total lines** for wages and taxes, which can then be mapped directly to Income Statement accounts. ![Screenshot 2026-09-16 at 4.19.07 PM](https://help.planguru.com/hs-fs/hubfs/Screenshot%202026-09-16%20at%204.19.07%20PM.png?width=567&height=400&name=Screenshot%202026-09-16%20at%204.19.07%20PM.png) ![Screenshot 2026-09-16 at 4.14.06 PM](https://help.planguru.com/hs-fs/hubfs/Screenshot%202026-09-16%20at%204.14.06%20PM.png?width=670&height=308&name=Screenshot%202026-09-16%20at%204.14.06%20PM.png) --- ### 7️⃣ Linking to the Income Statement - Link **Salary totals** to the **Wages** expense line. - Link **Tax totals** to **Payroll Tax** expense lines. - Ensure totals reflect all employee groups for accurate consolidated reporting.     - [PlanGuru App (Online)](https://help.planguru.com/knowledge/planguru-app-online?hsLang=en#main-content) - [Getting Started](https://help.planguru.com/knowledge/planguru-app-online?hsLang=en#getting-started) - [Setup & Import](https://help.planguru.com/knowledge/planguru-app-online?hsLang=en#setup-import) - 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