Employment Cost Calculations for a $ 145,000.00 Salary in New Brunswick
Employing staff in New Brunswick involves understanding the various costs associated with a salary. For a salary of $ 145,000.00 per annum, there are several factors that contribute to the total employment cost. This article aims to provide a detailed breakdown of these costs, helping employers in New Brunswick navigate through the financial responsibilities of hiring employees.
New Brunswick Cost of Employee Earning $ 145,000.00 Salary per Annum Calculation | $ 145,000.00 | Annual Salary in 2024 |
| + | $ 5,223.22 | New Brunswick Employers Social Security Contributions on $ 145,000.00 in 2024 |
| |
| = | $ 150,223.22 | Total Payroll cost of Employee in New Brunswick in 2024 |
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$ 145,000.00 Salary in New Brunswick - Payroll Cost Analysis
As an employer in New Brunswick, it is clearly important to understand the gross salary you pay your employees as this figure tends to be used for salary comparison against other related jobs and positions when recruiting and retaining staff in New Brunswick. A good employer also understands the value of understanding "net pay" or "take home pay" as it is commonly referred to. Visability of the take home pay your employees in New Brunswick attain is important for understanding how they cope with the cost of living in New Brunswick and ensuring that they have sufficient funds to engage their focus in work activities during employment hours, i.e. they are not preoccupied with financial concerns due to poor salary or considering leaving for better salary package oppertunities.
Employer Cost Elements
Employee Cost Elements Key Points:
Employer Socail Security1: 3.48%
Gross Salary1: 96.52%
$ 145,000.00 Salary Elements
$ 145,000.00 Salary Elements Key Points:
Employee Socail Security2: 3.31%
Personal Income Tax2: 11.66%
Take Home Pay2: 67.87%
Note1: Employer Social Security and Salary percentages shown as a percentage of total employment cost in New Brunswick.
Note2: Employee Social Security, Personal Income Tax and Take Home Pay in New Brunswick shown as a percentage of Gross Salary in New Brunswick in 2024.
What is the take home pay on a $ 145,000.00 salary in New Brunswick?
For our $ 145,000.00 salary in New Brunswick, our employee would have an annual take home pay after payroll deductions and taxes of $ 98,410.21 which is 67.87% of their gross pay, you can see a salary and payroll deductions example for $ 145,000.00 here.
What are the employer costs on a $ 145,000.00 salary in New Brunswick?
As we showed on the snapshot table earlier, the cost on an employee on a $ 145,000.00 annual salary in New Brunswick is $ 150,223.22, let's take a look at how this figure was calculated:
New Brunswick: Employer Social Security and Payroll Contributions Calculation 2024 | $ 3,754.45 | New Brunswick Employers Contributions for Canada Pension Plan (CPP) in 2024 |
| + | $ 1,468.77 | New Brunswick Employers Contributions for Employment Insurance (EI) in 2024 |
| |
| = | $ 5,223.22 | New Brunswick Employers Contributions on $ 145,000.00 in 2024 |
New Brunswick: Employer Contributions Calculation for Canada Pension Plan (CPP) 2024 | $ 145,000.00 | Salary in 2024 |
| - | $ 3,500.00 | Minimum earnings threshold for Canada Pension Plan (CPP) in 2024 |
| |
| = | $ 141,500.00 | Earnings subject to Canada Pension Plan (CPP) in 2024 |
| x | 5.95% | New Brunswick Employer Contribution Rate for Canada Pension Plan (CPP) in 2024 |
| |
| = | $ 8,419.25 | New Brunswick Employers Contributions for Canada Pension Plan (CPP) on $ 145,000.00 in 2024 |
| - | $ 3,754.45 | Maximum Contributions for Canada Pension Plan (CPP) in 2024
[$ 66,600.00 - $ 3,500.00 × 5.95%] |
| |
| = | $ 3,754.45 | New Brunswick Employers Contributions for Canada Pension Plan (CPP) in 2024 |
New Brunswick: Employer Contributions Calculation for Employment Insurance (EI) 2024 | $ 145,000.00 | Salary in 2024 |
| x | 2.324% | New Brunswick Employer Contribution Rate for Employment Insurance (EI) in 2024 |
| |
| = | $ 3,369.80 | New Brunswick Employers Contributions for Employment Insurance (EI) on $ 145,000.00 in 2024 |
| - | $ 1,468.77 | Maximum Contributions for Employment Insurance (EI) in 2024
[$ 63,200.00 - $ 0.00 × 2.324%] |
| |
| = | $ 1,468.77 | New Brunswick Employers Contributions for Employment Insurance (EI) in 2024 |
These calculations are based on the annual gross salary of $ 145,000.00 and the Social Security Rates and Thresholds for New Brunswick during the 2024 tax year which are displayed below.
New Brunswick Social Security in 2024: Rates for Employers and Employees| Social security category | Employee | Employer | Total |
|---|
| Canada Pension Plan (CPP) | 5.95% | 5.95% | 11.9% |
| Employment Insurance (EI) | 1.66% | 2.324% | 3.984% |
New Brunswick Social Security in 2024: Earnings Thresholds for Employers and Employees| Social security category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Canada Pension Plan (CPP) | $ 3,500.00 | $ 66,600.00 | $ 3,500.00 | $ 66,600.00 |
| Employment Insurance (EI) | n/a | $ 63,200.00 | n/a | $ 63,200.00 |
Holistic Cost of Employee in New Brunswick calculations
In this cost of employment analysis of a $ 145,000.00 salary in New Brunswick we have focused on the specific payroll elements of Basic Salary and Social Security but this is not a holistic employment cost calculation. The true cost of employing someone with a salary of $ 145,000.00 per annum in New Brunswick extends well beyond the gross salary. Employers must account for social security contributions, taxes, additional benefits, training costs, administrative expenses, and legal obligations. A comprehensive understanding of these elements is crucial for effective financial planning and management of human resources in New Brunswick. This is particulalry true for the first year of employment when setup costs are higher.
1. Basic Salary
The base of the employment cost is the gross salary, which in this case is $ 145,000.00 per annum. This amount is what the employee earns before any deductions or additional costs are considered.
2. Social Security Contributions
In New Brunswick, employers are required to contribute to social security, which includes Canada Pension Plan (CPP), Employment Insurance (EI). In 2024, an employer contributions typically amount to around 8.274% of the gross salary where as employees typically contribue 7.61% to social security in New Brunswick.
3. Additional Benefits and Bonuses
Many employers in New Brunswick offer additional benefits such as bonuses, and other perks. These should be factored into the total employment cost as they can significantly increase the overall financial commitment.
4. Training and Development Costs
Investments in training and development are vital for keeping your employees in New Brunswick skilled and motivated. These costs can vary but should be included in the total employment cost calculation.
5. Administrative and Overhead Costs
There are also administrative costs related to New Brunswick payroll management and other HR functions. Overhead costs like workspace, equipment, and utilities attributed to the employee should also be considered.
6. Legal Obligations and Insurance
Employers in New Brunswick are also responsible for certain legal obligations and insurances, which can add to the employment cost. These include liability insurance and adherence to labor laws and regulations.
Similar Employee Cost Examples in the 145k earning range
You may also find the following salary based employee cost examples for New Brunswick useful as they were viewed by others who read the "Employment Cost Calculations for a $ 145,000.00 Salary in New Brunswick", alternatively you can create your own employee cost calculation here.