Enter the qualified wages and the retention cost rate into the Calculator. The calculator will evaluate the employee retention cost.

- Retention Bonus Calculator
- Relative Retention Time (RRT) Calculator
- Salary To Contract Rate Calculator

## Employee Retention Cost Formula

ERC = QW * RCR

Variables:

- ERC is the employee retention cost ($)
- QW ($) is the qualified wages
- RCR (.50 for 2020 and .70 for 2021) is the retention cost rate

To calculate employee retention cost, multiply the qualified wages by the retention cost rate.

## How to Calculate employee retention cost?

The following steps outline how to calculate the employee retention cost.

- First, determine the qualified wages.
- Next, determine the retention cost rate.
- Next, gather the formula from above = ERC = QW * RCR.
- Finally, calculate the employee retention cost.
- 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.

qualified wages = 60000

retention cost rate = 0.7