Why is Labor not treated like an Expense? [FAQ]
Employee labor cost does not post to an expense account in Workamajig. This is due to labor being viewed as a company expense since you need to hire/pay for them regardless if they work on a project or not. Now, Workamajig does have job costing so employees' hourly cost can be attributed to a client/project, which then an overhead allocation would provide the client and project P&Ls for that purpose. You then enter a Journal Entry for each payroll as paid by the company.