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 ($)
- MP is the total months of pay received from the settlement
How to Calculate Employment Settlement?
The following steps outline how to calculate the Employment Settlement.
- First, determine the employee’s annual salary ($).
- Next, determine the total months of pay received from the settlement.
- Next, gather the formula from above = ES = AS / 12 * MP.
- Finally, calculate the Employment Settlement.
- 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 = ?
