Benefits cost as a percent of payroll calculator: what do benefits cost you?
Enter your yearly payroll and the employer cost of health and other benefits to see the cost as a share of payroll and per employee. Built for finance and HR teams that track the cost of benefits and report it to leadership.
Find your benefit cost as a share of payroll.
Use last year’s totals or this year’s budget. The result updates as you type.
Total wages for the year.
The employer share of medical premiums or claims.
Dental, vision, life and other benefits the employer pays for.
Your benefit cost
A planning estimate. Use the same definition of payroll and of employees each year so the trend is meaningful.
Why track benefits as a share of payroll?
A dollar figure for benefits grows with headcount and with pay. A percentage of payroll removes that noise and shows whether benefits are taking a larger or smaller share of what the company spends on people. It also puts benefit cost in terms a finance team and an owner already use when they discuss compensation.
What should go in the total?
Count what the employer pays: its share of medical, dental, vision and life premiums, plus employer contributions to accounts such as an HSA, and the cost of claims for a self-funded plan. Leave out what employees pay through payroll deductions. Keep the same definition each year so the comparison holds.
Common questions
What is a good percentage?
It depends on the industry, the wage level and how generous the plan is. Use your own history as the benchmark and look at the direction.
Should I include payroll taxes?
This tool counts benefit cost only. Employer payroll taxes are a separate line.
How does this help with a renewal?
Run it on the current year and on the renewal. A renewal that adds several points to the share of payroll is worth a deeper review of the options.
How do I model changes?
Change the employer cost line to test a new contribution or a new plan, and see the effect on the share. Our contribution calculator can supply the numbers.
Talk to us about the cost of benefits
Book a 30-minute call and we will review your cost against your payroll and your renewal options. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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