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YOURPEOPLE, INC.

How is total cost calculated for pay runs

The total cost of a pay run includes net pay, employee and employer taxes, deductions and contributions, and reimbursements:

Total Cost = Gross Pay + Contributions + Employer Taxes + Reimbursements

For example, consider a pay run with two employees (with no contributions):

  Gross Pay Deductions Employee Taxes Employer Taxes Net Pay Reimb. Cost to Employer
Worker 1 5000 300 1606.18 552.25 3093.82 100 5652.25
Worker 2 3000 200 854.75 329 1945.25 50 3379
               
Totals 8000 500 2460.93 881.25 5039.07 150 9031.25
  8000 + 881.25 + 150 = 9031.25

However, the actual amount withdrawn to pay the run may be less, especially if some employees are paid by check. Learn more.

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