PAI allows organizations to establish default fringe settings at the organizational level, creating a standardized foundation for all new projects. This feature helps maintain consistency in financial calculations across projects while reducing the manual effort of setting up common fringes for each new estimate. ## Accessing Organization Default Fringes - **Navigation Path**: Settings > Fringes - **Permission Requirements**: Only users with administrative access can view and modify organization default fringes - **Purpose**: Create a library of commonly used fringes that automatically populate in new projects ![[access-defualt-fringe-action.gif]] ## Creating Default Fringes #### 1. **Add New Default Fringe**: - Click to add a new fringe - Enter a descriptive name for the fringe (e.g., "Payroll Tax", "Insurance", "Production Fee") - Click the check mark to save the name - Assign a color by clicking the color box and selecting from the color options - Set the default external percentage (client-facing rate) - Set the default internal percentage (organization cost) - Optionally check "Link to Internal" to automatically match external and internal percentages ![[create-default-fringe-action.gif]] > [!tip] Color coding > Using consistent color coding for fringes helps users quickly identify fringe types across projects. For example, always using blue for payroll taxes and green for insurance makes visual identification easier. #### 2. **Advanced Fringe Settings**: - Access additional settings by clicking the caret (>) to the left of the fringe name - These settings determine how the fringe is applied when new projects are created ![[advanced-fringe-set-action.gif]] ## Default Application Options Using the dropdown menu, select one of four application methods: ### Apply to all items in a project - This fringe will be automatically applied to all line items added to any new project - **Use Case**: Apply a universal fee to all items. If you need to accrue funds internally without billing the client, you can set an internal percentage only, which is useful for covering annual costs like insurance ### Apply to none of the items in the project - The fringe will be available in the Fringe Tab and fringe dropdown menus, but will not be automatically applied to any items - **Use Case**: Create specialized fringes with specific rates that users can select as needed, such as varying Payroll & Workers' Comp fees that differ by state ### Apply to specific departments - After selecting this option, you must choose which department the fringe should apply to - The fringe will be automatically applied to all line items added to the selected department - **Use Case**: Apply specific fees just to internal staff expenses or to certain departments like post-production ### Apply to specific categories - After selecting this option, you must choose which category the fringe should apply to - The fringe will be automatically applied to all line items added to the selected category - **Use Case**: Apply Payroll & Workers' Comp fees just to Labor items by default across all projects ## Default Fringe Implementation When default fringes are established: - **New Project Creation**: All new projects automatically include the organization's default fringes according to the application settings you've chosen - **Fringe Tab Population**: The Fringe Tab in new estimates will be pre-populated with all default fringes - **Application Logic**: Default fringes are applied based on your selected application method - either globally, by category, by department, or not automatically applied - **Project-Level Customization**: Project teams can still modify, add, or remove fringes at the project level without affecting organization defaults ## Strategic Benefits Organization default fringes provide several advantages: - **Consistency**: Ensures all projects use the same fringe types and calculations - **Efficiency**: Eliminates the need to recreate common fringes for each new project - **Standardization**: Maintains uniform naming conventions and calculation methods - **Financial Accuracy**: Reduces the risk of missing important fringes in project estimates - **Flexibility**: Provides granular control over how fringes are applied by default > [!info] Important notes > - Changes to organization default fringes do not affect existing projects > - Project-level fringe modifications always take precedence over default settings > - When organization defaults are updated, only new projects created after the change will reflect the updated defaults ## Common Default Fringe Types Organizations typically configure these common fringe types: 1. **Production Fee**: Standard markup percentage applied to all items 2. **Payroll Taxes**: Applied to labor items to cover employment taxes 3. **Workers' Compensation**: Insurance for on-set personnel 4. **Production Insurance**: Coverage for equipment and general liability 5. **Health & Welfare**: Benefits for qualified crew members 6. **Agency Fee**: For agencies managing client productions 7. **Sales Tax**: Applied to taxable items based on jurisdiction 8. **Contingency**: Buffer percentage for unexpected costs ## Related Topics - [[Fringes|Fringes in PAI]] - [[Estimates|Estimates]] - [[Organization Settings|Organization Settings]] © 2025 PAI Tech, Inc. [paihq.com](https://www.paihq.com/)