Payroll Cost Calculator

What formula does this tool use for total payroll cost?

This tool uses cost per employee = gross salary + employer contributions, and total payroll cost = cost per employee × number of employees. The contribution lines depend on the country. With the defaults of 60,000 in the United States and one employee, contributions are 4,902.00 and the total cost is 64,902, an on-cost rate of 8.17% of salary.

Which employer rates and caps are built in?

These are the figures built into this tool, not a description of current rules, and none carries a year label in the code. US: Social Security 6.2% up to 168,600, Medicare 1.45% with no cap, FUTA 0.6% on the first 7,000 and an estimated SUTA of 2.7% on the first 10,000. UK: employer National Insurance 13.8% above 9,100 and a 3% pension on the full salary. India: EPF 12% of an assumed basic of 50% of gross, ESI 3.25% of gross when monthly gross is 21,000 or less, and gratuity provisioning of 4.81% of basic. Canada: CPP 5.95% between 3,500 and 68,500 and EI at 1.4 times 1.66% up to 63,200. Australia: superannuation 11.5%, plus payroll tax of 5% on total wages above 1,200,000, labelled as a NSW estimate.

Why does the on-cost rate fall as salary rises in the US?

Because several lines are capped. At 200,000 the Social Security portion stops at 10,453.20 (6.2% of 168,600), while FUTA and SUTA stay at 42.00 and 270.00. Contributions are 13,665.20 and the on-cost rate is 6.83%, lower than the 8.17% shown at 60,000.

How does the Australian payroll-tax line work?

It looks at salary times the number of employees. If that total is above 1,200,000, 5% of the excess is spread evenly over the employees. Fifteen employees at 100,000 make 1,500,000, so 15,000 of payroll tax is allocated, 1,000 each, giving 112,500 per employee and 1,687,500 in total. One employee at 100,000 shows 0.00 of payroll tax and a total of 111,500.

How is the ESI rule for India applied?

It tests gross salary ÷ 12 against 21,000. At 240,000 a year (20,000 a month) ESI is included at 3.25%, which is 7,800.00, and the total on-cost rate is 11.65%. At 1,200,000 the line is labelled not applicable and shows 0.00, leaving an on-cost rate of 8.40%.

What happens with zero employees or zero salary?

Zero is respected. With 0 employees the total payroll cost is 0 while the per-employee lines still show what one hire would cost, for example 111,500 in Australia at 100,000. A salary of 0 gives zero for every line, and the on-cost rate is shown as 0.00% because there is no salary to divide by.

What costs does it leave out?

Health and other insurance, workers’ compensation, paid leave, bonuses, recruitment, equipment, training, office space and any rates specific to a state, province or employer. It also uses the same salary for every employee, so a mixed team has to be calculated group by group.