How are weekly salaries calculated?

Question

How does 7shifts allocate weekly salaries for salaried employees across reports and payroll?

Answer

7shifts distributes a salaried employee's weekly pay in two layers. The first layer, salary allocation, splits the salary across locations by percentage and drives what appears in labor reports. The second layer, Appear on Schedule, controls which departments show the salary in the Labor Budget Tool on the Schedule page. Both layers start from the same wage entered on the employee's Wages and payment tab. 

How it works

1. Set the employee's weekly or annual salary on the Wages and payment tab.
2. Configure salary allocation percentages to control how the salary is split across locations in labor reports. See Salary allocation across locations.
3. Assign the employee to the relevant locations and departments on the Assignments tab.
4. Toggle Appear on Schedule per department to control whether the salary shows in the Labor Budget Tool on the Schedule page.

Layer 1: Salary allocation and location split

Salary allocation determines how the employee's weekly wage is divided across their assigned locations. This is configured on the Wages and payment tab in the employee profile and drives what appears in all labor reports.

• By default, the salary is split evenly across all assigned locations.
• Admins can configure custom percentage splits, for example, 70% to Location A and 30% to Location B. See Salary allocation across locations.
• Once the salary is allocated across locations and departments, it is evenly distributed across each selected daily allocation day to keep daily report figures accurate. This applies regardless of whether a shift is scheduled on those days.
• Salary allocation amounts appear in labor reports regardless of Appear on Schedule settings.

Within each location, the allocated amount is then divided evenly across the departments the employee is assigned to, and spread across the days selected in their Daily allocation settings.

Layer 2: Appear on Schedule and Labor Budget Tool visibility

Salaried employee costs appear in the Labor Budget Tool purely for scheduling visibility and labor cost planning. They help managers see their projected labor spend as they build the schedule and track whether they are within their labor targets, not to determine what the employee is actually paid.

The Appear on Schedule setting is configured on the Assignments tab per department. It controls whether the employee's salary shows on the Schedule page or in the Labor Budget Tool . It does not change the dollar amounts or affect labor reports.

• If Appear on Schedule is enabled for a department, that department's share of the salary appears in the Labor Budget Tool for past actuals and future projections.
• If Appear on Schedule is disabled for a department, that department shows $0 in the Labor Budget Tool but the salary still appears in labor reports.
• 7shifts does not break down salary hourly in the day view of the Labor Budget Tool.

The full distribution flow

When a salary is entered, 7shifts distributes it following this sequence:

1. Wage entered: the weekly or annual salary is set on the Wages and payment tab. Annual salaries are divided by 52 to determine the weekly amount.
2. Location split: the weekly salary is divided across assigned locations based on salary allocation percentages. This drives labor report figures.
3. Department split: within each location, the allocated amount is divided evenly across assigned departments.
4. Daily split: the department amounts are spread across the days selected in the employee's Daily allocation settings (all 7 days by default).
5. Labor Budget Tool filter: Appear on Schedule determines which department amounts surface in the Labor Budget Tool on the Schedule page. This does not change the underlying numbers.

Examples

Example 1: Single location, default even split

One salaried employee assigned to one location with two departments. ($1,000/week)

With one location, salary allocation defaults to 100%, so the full $1,000 is attributed to Location A. The $1,000 is then divided evenly between the two assigned departments, resulting in $500 per department in both labor reports and the Labor Budget Tool.

Example 2: Multi-location with custom salary allocation

One salaried employee assigned to two locations with a custom 70/30 salary allocation. ($1,000/week)

With a custom salary allocation of 70% to Location A and 30% to Location B:

• Location A receives $700 in labor reports. If assigned to FOH and BOH with both departments equally weighted, each shows $350.
• Location B receives $300 in labor reports. If assigned only to FOH, FOH shows the full $300.

Appear on schedule settings then control which of these amounts appear in the Labor Budget Tool, but the labor report figures ($700 and $300) are fixed by salary allocation regardless.

To configure custom splits, see Salary allocation across locations.

Example 3: How Appear on Schedule affects the Labor Budget Tool, not labor reports

7shifts Payroll

When using 7shifts Payroll, the calculation for weekly salaries is based on 5 workdays to reflect standard workweeks. This differs from labor reports and the Labor Budget Tool, which distribute weekly salaries across the days selected in the employee's Daily allocation settings (all 7 days by default).