Video: How To Calculate Social Security Benefits



How to Calculate Benefits

To calculate benefits, you first have to know what your benefits are. For employment benefits, this will mean the total value of all the fringe benefits that come with your job above and beyond your paycheck. If you're an employer calculating the total cost of an employee, you'll have this information readily available. If you're an employee, or prospective employee, it might be more difficult to get exact figures for every single aspect of your compensation package.

Steps

  1. Look up the value of your employer's contribution to health insurance.This may include not just the raw cost, but also the difference between how much your coverage costs the company and how much it would cost you to get the same coverage. This alone can represent the majority of value when you calculate benefits.
  2. Calculate the value of other insurance available as part of your compensation package.Some examples include vision, dental, long-term disability, short-term disability and life insurance. Although the individual cost of these benefits is often relatively low, the value comes from the often sharply discounted rates as compared to buying these policies as an individual.
  3. Check the benefit value for retirement contributions, including any fund matching.If working this out to determine actual costs or value, use matching for funds that were actually contributed and not the maximum matching you actually did.
  4. Add up the total number of hours or days of paid leave permitted per year, and multiply that by the hourly or daily pay scale for the position.
  5. List any expenses reimbursed by your company as part of the benefits package.These might include deposits into a flexible or health spending account, the cost of professional licenses, education expenses and child care expenses. Some companies also reimburse the cost of parking or a gym membership.
  6. Calculate benefit value for any employee stock purchase plans or similar vehicles.This can be tricky, as the real value often isn't clear until the stock is sold years later.
  7. Add up any additional compensation such as bonuses and commissions.If this amount varies considerably, take an average of recent payments.
  8. Divide the results into two different lists:those paid for with pre-tax dollars and those paid for with post-tax dollars.
  9. Total the value of all benefits paid for with post-tax dollars.
  10. Determine which pre-tax benefits in your compensation package receive a tax credit if purchased by a private citizen.If you're not sure, check with your accountant or tax lawyer.
  11. Total the value of all benefits that would be paid for under a tax credit.
  12. Estimate the tax cost of each benefit that is paid for with taxable income if you purchase it as an individual.Add these tax costs, and calculate the benefits value for this third category of benefit.
  13. Add up the total of all three categories in your compensation package.

Community Q&A

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  • Question
    Can I get unemployment if I have only worked for 4 months?
    wikiHow Contributor
    Community Answer
    It depends on the state where you were working. For example, if you worked in Illinois, you would not be eligible to receive unemployment benefits because you would have to have worked for six months before receiving them.
    Thanks!
Unanswered Questions
  • How do I compute redundancy pay?
  • Where do I find a benefit chart?
  • What are the implications for an employer and employee when there is incorrect information regarding a payable benefit?
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Video: How to Easily Calculate Your Social Security Benefit for Any Age Between 62 & 70

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Date: 06.12.2018, 14:40 / Views: 53194