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: A sum of money paid and held as security against potential future obligations.
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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