Enter the employee’s annual salary (\$) and the total months of pay received from the settlement into the Employment Settlement Calculator. The calculator will evaluate the Employment Settlement.

## Employment Settlement Formula

The following two example problems outline the steps and information needed to calculate the Employment Settlement.

ES = AS / 12 * MP

Variables:

• ES is the Employment Settlement (\$)
• AS is the employee’s annual salary (\$)
• MP is the total months of pay received from the settlement

## How to Calculate Employment Settlement?

The following steps outline how to calculate the Employment Settlement.

1. First, determine the employee’s annual salary (\$).
2. Next, determine the total months of pay received from the settlement.
3. Next, gather the formula from above = ES = AS / 12 * MP.
4. Finally, calculate the Employment Settlement.
5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem :

Use the following variables as an example problem to test your knowledge.

employee’s annual salary (\$) = 60,000

total months of pay received from the settlement = 3

ES = AS / 12 * MP = ?