Is it ok to ask temporary employees to contribute to parties?

How net salary will change when employees contribute to their company’s 401k plan?

• could you let me know how net salary will change when employees contribute to their company's 401k plan? For example, employees contribute 0%, 5%, and 10% of their gross salary. I want to know how can I calculate them. Thank you!

• Answer:

  You don't specify the annual salary this employee receives. But the net salary is: with no contribution: 100% (no deduction) at 5% plan contribution: 95% of gross pay (multiply gross pay x 0.95). at 10% plan contribution: 90% of gross pay (multiply gross pay x 0.9). at 15% plan contribution: 85% of gross pay (multiply gross pay x 0.85). The end value of the investment after 45 years at 6% interest is: the monthly investment amount times 2,769.77 and that's a lot of bucks. Here is an online financial calculator to make it easy: http://googolplex.cuna.org/13590/ajsmall/article.php?doc_id=2498 Oh yes, you could do it by hand and after one or two or 6 hours of work (and assuming you make no mistakes) you would get a very similar result. The formula is: Annual contribution x [(1.06)^44 + (1.06)^43 + (1.06)^42 + etc. etc.] Actually your result would be somewhat too conservative, because you make the investment in monthly installment, but do it accurately would have to make over 540 individual calculations, using the monthly contribution and working with factors to a very high power. Then you would still have to add them all together and that without making any errors. Virtually impossible.