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
- 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