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However, the actual amount withdrawn to pay the run may be less, especially if some employees are paid by check.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