how to calculate company match
For example, if the company agrees to match 65 percent of employee contributions, divide 65 by 100 to get 0.65. 4. Multiply the matching rate by the smaller of the total contributions made by the employee or the maximum contribution subject to matching to calculate the employer matching contribution. Finishing this example, multiply 0.65 by $4,200 to find the companyâs matching contribution equals $2,730.
This match is typically a 100% match up to 3% and then a 50% match from 3% to 5%. With this match, an employer would match dollar-for-dollar up to 3% of the employee's salary the 50 cents on the dollar for anything above 3% and below 5% of their total salary.