Total compensation statements are designed to be a report that can be displayed to your employees to provide a report of their individual estimated total compensation. The report factors in benefits in which they are enrolled as well as applicable employer contributions which make up the employee's total compensation (such as taxes). This report is not a date based report and is only looking at the current enrolled benefits and calculating projected annualized cost in order to give the employee a better idea of how their own annualized cost and employer contributions impact the true compensation.
To generate the Total Compensation Statements for all employees in one pdf file, go to the company Reports tab > BENEFIT REPORTS > Total Compensation Statements > click the Generate button.
From this same page you can view the Total Compensation Statement for only one employee by typing the employee's last name in the field under 'Look up an employee for the report' > select the employee > click the Generate button.
The Total Compensation Statement will also for employees on their home page under the Benefits section found in the middle of their home page. The visibility control for this report can be accessed under the company Settings tab> EMPLOYEE EXPERIENCE > General Settings > Options affecting employee display > show Total Comp. Statement on home page.
The calculations on the total compensation statements currently works as follows:
Taxable Income = Employee Income - Pretax Deductions
Taxable Income * Medicare/SS Tax Rate = Tax
Employee Cash Compensation: Sum of employee annual base salary plus any fringe benefits configured as Taxable Income = Yes.
Pre-Tax Deductions: Employee Amounts for any medical model plans or any Fringe Benefit Plans configured as Pre-Tax Deduction = Yes.
Taxable Amount * Social Security Employee Tax Rate .062 = SS Tax
Taxable Amount * Medicare Tax Rate .0145 = Medicare Tax
Social Security and Medicare contribution amounts are determined by taking the taxable income (salary plus any other item added in as compensation through Fringe Benefits), subtracting any pre-tax benefits, and then multiplying by current FICA tax rates.
Total Compensation Statements are calculated based on the current plan year and will use the employee's current annual salary, current plan enrollments, and current fringe benefits (if configured).
Note: The Social Security Wage limit for the current year will also be applied, therefore, the employee's SS taxes will not exceed the SS Max Wages x 6.2%. This limit would impact employees whose Annual Base Salary - Pre-Tax deductions is greater than the SS Wage limit for the year.
- 401k contributions elected through the retirement plan model are not supported at this time, so the ee Annualized Contribution will reflect $0 regardless of the ee's elected contribution. 401k ER contributions assigned through the fringe benefit tool will display the $ match amount used (shown under compensation on total comp statement).*
- The .9% additional tax is only paid by the employee, so this will not show up on our total compensation report.
**Detailed instructions to add Fringe Benefits are explained in this article. Please note that at this time entering Fringe Benefits cannot be imported and must be manually added per employee.