• BS is the base annual salary ($) ## How to Calculate Employee Cost? The following example problems outline how to calculate Employee Cost. Example Problem #1: 1. First, determine the base annual salary ($). The base annual salary ($) is given as 75,000. 2. Finally, calculate the Employee Cost using the equation above: EC = BS * 1.4 The values given above are inserted into the equation below: EC = 75,000 * 1.4 = 105,000 ($)

Example Problem #2:

The variables needed for this problem are provided below:

base annual salary ($) = 60,000 Entering these values and solving gives: EC = BS * 1.4 = 84,000.00 ($)