Blog
Sandra Redlich
CONTRATA DONDE SEA
Contrata e incorpora empleados en el extranjero sin abrir entidades
Contrata, gestiona y paga a autónomos en todo el mundo
PAGA EN TODAS PARTES
Consolidación global de nóminas
Unifica las operaciones de nómina en todos tus países
Gestión de nóminas en varios países
Paga a tus empleados en otros países
HÁGASE SOCIO
Únase a la red Lano de socios locales de nómina
X
Hágase socio afiliado de Lano para empezar a ganar comisiones
Explora el ecosistema de integraciones y socios de Lano
Descubra cómo Lano puede ayudarle a crecer y pagar a su equipo internacional
EMPLEO GLOBAL
Contrata a los mejores talentos en cualquier lugar
Contrata empleados en países donde no tienes entidad jurídica
Prueba nuevos mercados sin el riesgo ni el coste de abrir entidades locales
Reubica y fideliza a tus empleados
Mantén el talento que se marcha a otros países
Convierte a los autónomos en empleados
Incorpora a los autonómos a tiempo completo de manera legal
NÓMINA GLOBAL
Gestiona las nóminas de todas tus entidades y proveedores en un único lugar
Implanta nóminas en nuevos países
Establece y gestiona nóminas en conformidad en cualquier país
Cambia los proveedores locales de nóminas
Sustituye a los proveedores de bajo rendimiento por partners de Lano
Realiza pagos transfronterizos
Paga a tus empleados en todo el mundo en moneda local
CASE STUDY
Descubre cómo PrestaShop se expandió en cuatro países en sólo seis meses con Lano
RECURSOS
Todo lo que necesitas saber para contratar en el mundo
Conoce las mejores prácticas para gestionar las nóminas de forma global
Todo lo que necesitas saber para contratar en el mundo
Compara los costes de pagar en todo el mundo con Lano
APRENDIZAJE
Aprende a utilizar y sacar el máximo partido a Lano
Mantente al día de las noticias, contenidos y mucho más de Lano
Explore nuestro glosario de términos de recursos humanos y de nómina
Learn all you need to know about global payroll and hiring
ACADEMIA
Conviértete en un experto en contratación global y nóminas
Gain insights into how much it costs to hire remotely in a country
Precios
CONTRATA DONDE SEA
PAGA EN TODAS PARTES
HÁGASE SOCIO
EMPLEO GLOBAL
NÓMINA GLOBAL
RECURSOS
Precios
English
Français
Deutsch
Español
You are probably familiar with the terms gross and net pay, but would you be able to name the exact differences off the top of your head?
Don’t worry, we are not here to quiz you, we are here to help! On this page, we explain the difference between gross and net pay, how they are calculated and what deductions are most commonly made from your payments.
Too busy to read? Let our automated global payroll software do the heavy lifting for you! Here’s everything you need to know about outsourcing payroll for your business.
Simply put, gross pay refers to the amount of money your employees receive before any deductions have been subtracted. Deductions are usually made for income tax, and might also include contributions for health insurance or potential student loans or retirement funds, depending on your employee’s place of residence.
Net pay on the other hand describes the amount of money your employees get paid into their bank account after all the deductions have been made.
Usually, salaries are given in a gross pay amount. Weekly or monthly payslips will then break down exactly how much has been deducted from that amount to get to the final net number that is transferred into the employee’s bank account.
How much is deducted from gross pay is highly dependent on your employee’s place of residence. On top of that, company-specific additional payments may also influence what is removed from gross pay.
Here are some of the most common deductions.
The most common deduction made from gross pay is a percentage to cover income taxation. The amounts vary greatly depending on which country your employee lives in. Most countries use a progressive taxation system to calculate the tax percentage, meaning the taxable amount increases with rising income.
Tax offices often provide the taxpayers with free digital tools to calculate how much money is withheld from gross pay for taxes.
Many countries have mandatory health care, which means that a certain percentage is taken from gross pay to cover universal health care. But other insurances such as unemployment or disability insurance might also be included and are therefore subtracted from the gross payment.
Another commonly removed payment from gross pay goes towards pension funds. Employees can often choose between a government state fund or private pension scheme. In some countries, these contributions are matched by the employer, meaning employees pay a certain amount of money from their gross pay into their pension fund, with the employers paying the same amount on top out of their own pocket.
Incentive payments such as bonuses or holiday payments may be included on your payslip and are a great way to value your employee’s work and show your appreciation for their business contributions. However, these payments are also subject to taxation and are seen as taxable income. So if you pay out a bonus of $1,000, don’t forget to remove the appropriate income tax percentage from the gross pay.
Finally, some countries may charge students with loan repayments for their studies. These loan amounts are also taken out of the gross pay.
Create compliant contracts in minutes
Pay your team members in 28 different currencies
Grow your global team in 170+ countries
It is quite easy to determine your gross pay, however, the process slightly varies depending on salaried or hourly wage payments.
If your employees receive a fixed salary, all they have to do to calculate their gross annual income is to take the amount listed on their monthly payslips and multiply it by 12 to get an annual gross income.
Hourly paid employees most likely have varying payment amounts listed on each payslip, so multiplying one pay period’s amount won’t result in a reliable figure for their gross pay.
One way to still get the gross income based on hourly wages is to either add up a full year’s worth of payslips, or base your calculations on potential future work hours. If you have agreed on an average work week of 20 hours, your employees can use the following formula to calculate their gross income:
Hourly pay rate x 20 hours per week = weekly gross pay
You can use the same process as outlined above to calculate the net pay. Simply add up the amounts listed on your payslip.
Alternatively, you could also calculate your net income yourself by identifying all applicable deductions and subtracting them from the gross pay. But this method is quite a bit more time consuming.
Do you need help calculating gross or net pays for your employees or are looking to automate your payroll process all together? Lano’s software solution enables you to simplify your global payroll by automating data flows and consolidating payroll data for the entire team. Shoot us a message and we’ll tell you more about our global payroll solution.
WRITTEN BY
Sign up for our monthly newsletter and get regular updates on new products, integrations, and partners. Stay up to date with our blog, podcast, industry news, and many more resources.
© Lano Software GmbH 2024
English
Français
Deutsch
Español