Invoices Categories

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Invoices Categories

THE BASICS
GLOBAL EMPLOYMENT: LANO 2.0
Which Lano is for you?Reporting payroll changes for your EOR employeesEmployee Expense Submission on the Lano PlatformManage Users and Assign RolesInvoices CategoriesInvoices display on Lano platform Request Termination or Report a ResignationEmployee ProfileEdit Hiring DetailsHiring FlowHire a New EmployeeEstimate the Cost of a New HireUpdate Company DetailsRegister on the Lano Platform

Learn how to differentiate invoices categories

Here are some common categories of invoicing and a brief overview of each:

  • Base salary: It is a fixed sum of money, paid on a regular basis (typically monthly) for the services the employee performs.

  • Social costs: The employer is required to withhold these taxes from the employee’s earnings, and these costs vary by country.

  • Bonus agreements: Extraordinary payments made to the employee to compensate or reward the employee e.g., it can include (sign-on bonuses, commissions, severance payments, compensation, benefits etc.)

  • Expenses: Extraordinary payments made to the employees to reimburse them for expenses incurred or salary foregone e.g., (Vacations,temporary leaves,travel or other types of expenses, maternity / paternity leave, sick leave, etc.)

  • Accruals: Accruals required to be built up for potential future payments e.g., 13th/14th salary accruals, holidays accruals, etc. 

  • Subsequent Adjustments: Adjustments to salary components made with the regular payroll of a subsequent month. 

  • Allowances: A sum of money granted as a benefit or compensation for an expense incurred e.g., car allowance, travel allowance, teleworking allowance, medical allowance etc.

  • Deposit: For every new employee hired through EOR, a deposit is required. The deposit is charged in case of wrongful termination, for most countries, the deposit is charged for one full month (salary + employee cost + management fee). However, in some cases, it could be two months due to legal regulation or if alternative payment terms were agreed upon with Lano. The deposit is fully refundable once the employment contract is terminated, within 60 days from the last paid termination invoice.

  • Accrued severance deposit: An accrual for potential future severance payments to the employee in case of termination.

  • Social contributions & insurances: Payments made as contributions towards insurance or other tax / social security charges e.g., health, sickness or accident insurance or pension contributions.

  • Service fees: Fees charged for the EOR service e.g., (regular service fees, immigration fees, setup fees or transaction fees, payroll change fees etc.)

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