Employer Remittance Calculator

The Employer Remittance Calculator helps businesses figure out the total amount they need to send to tax authorities and benefit agencies for each employee. This amount includes income taxes withheld from the employee’s salary, plus both the employee and employer portions of required contributions. By calculating these figures accurately, employers stay compliant and avoid penalties. It also helps with budgeting payroll costs and understanding total labor expenses.

Formula of Employer Remittance Calculator

To compute total employer remittance, use this formula:

Total Remittance = Employee Income Tax Withheld + Employee Contributions + Employer Contributions

1. Employee Income Tax Withheld

Calculate the tax taken from an employee’s gross salary:

Income Tax = Gross Salary × Applicable Income Tax Rate

2. Employee Contributions (deducted from gross salary)

• Social Security = Gross Salary × Employee Social Security Rate
• Medicare = Gross Salary × Employee Medicare Rate
• Unemployment Insurance = Gross Salary × Employee UI Rate
• Pension Plan = Gross Salary × Employee Pension Rate

3. Employer Contributions (paid on top of salary)

• Social Security = Gross Salary × Employer Social Security Rate
• Medicare = Gross Salary × Employer Medicare Rate
• Unemployment Insurance = Gross Salary × Employer UI Rate
• Workers’ Compensation = Gross Salary × Workers’ Comp Rate
• Pension Plan = Gross Salary × Employer Pension Rate
• Other Mandated Benefits = Gross Salary × Other Contribution Rates

By adding all these elements together, the calculator shows the total amount the employer needs to remit for each employee.

Common Terms and Helpful Table

Here is a quick guide to commonly searched terms related to employer remittances:

Example of Employer Remittance Calculator

Let’s calculate the total remittance for an employee with a $5,000 monthly gross salary.

Input:

• Income Tax Rate: 10%
• Employee SS Rate: 6.2%
• Employee Medicare Rate: 1.45%
• Employer SS Rate: 6.2%
• Employer Medicare Rate: 1.45%
• Employer UI Rate: 0.6%
• Workers’ Comp Rate: 1%
• Pension (Both sides): 2%

Step-by-step:

1. Income Tax: 5,000 × 0.10 = $500
2. Employee Contributions:
   • SS: 5,000 × 0.062 = $310
   • Medicare: 5,000 × 0.0145 = $72.50
   • Pension: 5,000 × 0.02 = $100
     Total Employee Contributions = $482.50
3. Employer Contributions:
   • SS: 5,000 × 0.062 = $310
   • Medicare: 5,000 × 0.0145 = $72.50
   • UI: 5,000 × 0.006 = $30
   • Workers’ Comp: 5,000 × 0.01 = $50
   • Pension: 5,000 × 0.02 = $100
     Total Employer Contributions = $562.50
4. Total Remittance = $500 (Income Tax) + $482.50 (Employee Contributions) + $562.50 (Employer Contributions) = $1,545

Most Common FAQs