# Maximum employer contribution caps in Remote's cost calculator Steve Lucas
• Updated

Remote's cost calculator provides Customers with an estimate of how much it will cost to hire employees through Remote in several countries around the world. To do this, we calculate the annual estimate and divide this figure by 12 months to provide the monthly estimate.

### Important to Note

There may be a discrepancy between the invoice amount you receive on a monthly basis and the monthly estimate presented in the cost calculator. This is because some percentage based employer contributions having a capped annual amount.

This can affect the monthly contribution breakdown for employees that earn a high gross salary. Here, Customers will have to pay a higher contribution amount per month than the monthly estimate shown on the cost calculator. Once the annual cap for this contribution is reached, Customers will no longer need to make contribution payments.

For example,

• An employer contribution of 8.33% has an annual cap of \$9,996.
• Employee A has a yearly gross salary of \$120,000. The annual employer contribution calculation would be \$120,000 * 8.33% = \$9,996. The cost calculator would display the monthly breakdown as \$833. The invoice from Remote would also show \$833 for this contribution element.
• Employee B has a yearly gross salary of \$360,000. The most an employer will contribute annually is \$9,666. The cost calculator will divide the \$9,666 capped annual employer contribution by 12 months to display the monthly figure of \$833. However, the monthly Remote invoice would be (\$360,000 * 8.33%)  / 12 months = \$2,499. After 4 months, the \$9,666 cap will be reached and the remaining months for that fiscal year, the employer contribution cost will be zero.