Splitting salaries by time

Why split salaries#

Salaries are usually a nonprofit's largest cost, and the statement of functional expenses and Form 990 Part IX ask for them by function. Most organizations guess the split once a year. EscBooks works it out for each payroll from the time logged while it was earned.

This guide uses EscBooks' own words. The Nonprofit preset calls projects Programs; change the words in Terms and features, and everything here works the same.

How the split works#

Time/Reports

Time Reports

Your tracked time for any range, client or project. Share it as a link or a PDF.

Jul 1 – Jul 31, 2026 · By project

ProjectHours

Summer Reading138.0 h

Family Literacy Nights24.0 h

Office and Board36.0 h

Spring Gala18.0 h

Total216.0 h

Payroll

Each payroll at gross on its pay date, and the bank lines that pay it.

Import from GustoRecord Payroll

Jul 31, 2026Jul 1 – Jul 31$7,400.00$7,966.10

Jun 30, 2026Jun 1 – Jun 30$7,400.00$7,966.10

May 29, 2026May 1 – May 31$6,950.00$7,481.68

Step 1 of 4PauseStart over

1. 1Log time on each program's project, as for any project. Fundraising work goes on a fundraising project; anything else counts as management and general.
2. 2On Payroll, open the payroll. By function splits its wages and employer costs by the hours logged in its pay period.
3. 3A grant paid part of it? Under Paid from funds, click Charge to a Fund. Pick the fund, the amount it paid and a note.
4. 4Click Charge to Fund. The fund's balance goes down by it, and the rest of the payroll is paid from unrestricted money.

• A payroll's wages and the employer's costs (payroll taxes, benefits, retirement contributions) are split by the hours logged in its pay period.
• Hours on a project set to Program services go to program services; on one set to Fundraising, to fundraising. Hours with no project, or on a project with no function set, are management and general.
• The pay period is the payroll's own start and end, or the month of its pay date when it has none.
• Payroll keeps each run's totals, not each person's pay, so the split comes from all the time logged in EscBooks in that period.

In July, 216 hours were logged: 162 on program projects, 18 on the gala and 36 on the office. A $7,966.10 payroll is then 75% program services, 8.3% fundraising and 16.7% management and general.

Log the time#

1. Set each project's Function (see Programs and functional expenses).
2. Log time on the project the work was for, with the timer or by hand, as for any project (see Tracking time).

See a payroll's split#

1. On Payroll, open the payroll.
2. By function lists each function's amount, with the project, its hours and its share. The line under it says how it was split: by the hours logged in its pay period, or by your percentages.

The split follows the time: log or change hours in the pay period, and the payroll's split follows. Recording payroll is in Payroll.

When no hours were logged#

A pay period with no hours logged is split by percentages you set, in Settings → Payroll under Salaries by Function:

• Program services (%) and Fundraising (%). Management and general is the rest.
• Set them from how staff time usually divides, such as last year's time sheets.

One payroll expense, all to one function#

A payroll's expenses show Split by hours logged (see the payroll) under Function. Picking a function there puts all of that expense under it instead. An expense on a project with a function set follows the project.

Charge payroll to a fund#

When a grant pays for a position, charge that part of the payroll to the grant's fund (see Restricted gifts and grants).

1. Open the payroll. Under Paid from funds, click Charge to a Fund.
2. Pick the Fund, the Amount it paid, and a Note such as Tutor hours, July.
3. Click Charge to Fund.

• A fund can pay up to the payroll's wages and the employer's taxes, benefits and retirement contributions. The rest is unrestricted.
• Several funds can each pay part of one payroll. Change or remove a charge with the buttons beside it.
• A fund can't go below zero. When it holds less, the message offers Charge … instead, for what it holds on the pay date.
• A payroll's expenses can't be charged to a fund in Expenses: it's done here, on the payroll.