Total Employee Compensation Package Calculator for Small Business Owners
Your employees are the backbone of your business, and you’ll want to make sure they are compensated fairly for their hard work.
How will your employee benefits package affect your bottom line? Can you offer more benefits or do you need to wait until your business grows a bit more?
To calculate an employee’s impact on your budget, you will need to factor in their base salary; medical, life and dental benefits; 401(k) contributions; and other fringe benefits that you intend to offer. Adding all factors is the difference between a $75,000 employee and a $98,000 employee. Once you have an estimate, you can make a clear offer of employee and understand how the new hire’s costs will fit into the business’s budget.
Frequently Asked Questions
How do you calculate total employee compensation?Employers can calculate their employee compensation package by adding benefits costs to the annual salary offered. Benefits include medical, disability and retirement.
How do you evaluate a compensation package?On top of the annual salary, a compensation package can include paid time off, a signing bonus, relocation assistance, and benefits including health insurance, life insurance and retirement savings options.
Did you know SouthState offers benefits for your employees? Learn more about checking accounts, health savings accounts and retirement planning.