Use the Employee Benefits Spend Calculator to quickly and easily calculate the percentage of total compensation spent on employee benefits, or download a free Excel template to use. The Benefits Spend Rate Calculator is an Excel template with predefined formulas that allow you to calculate the percentage of total compensation spent on employee benefits by simply entering a few pieces of data.
Employee benefits are non-wage compensation provided to an employee in addition to normal wages or salaries. These benefits may include health, vision, life, dental, and disability insurance, as well as vacation pay and maternity leave. The specific benefits provided to employees may vary depending on the company’s policy. Offering a wide range of benefits can help retain employees and increase productivity, and employers may also be able to claim tax deductions for premiums paid for employee benefits.
The Benefits Spend Rate is the percentage of total compensation spent on employee benefits. In recent years, this rate has increased from around 20% to 30% of total compensation.
Features of this Excel Template
The Benefits Spend Rate Calculator Excel template includes two sections: a Benefits Spend Rate section and a Benefits Spend Rate Detailed Calculation section. In the Benefits Spend Rate section, you can enter the total amount spent on benefits and the total amount of compensation to calculate the benefits spend rate. In the Benefits Spend Rate Detailed Calculation section, you can enter data on the specific types of benefits provided, as well as information on direct compensation such as basic pay, differential pay, and short and long-term incentive pay. When you enter this data, the template will calculate the benefits spend rate for you.