Payroll & Invoices
- Invoicing & Salary Pay-day
- Why do the fees and payroll change each month?
- What are the different amounts on the invoice?
- What are deposits?
- How can I request a change in salary?
- Where can I access billing information of my company?
- Where can I access invoices to my company?
- Where can I find detailed breakdown of payroll costs?
- Can I review global payroll reports in my billing currency?
- What does "Regularization" mean?
- Where can I input non-recurring income for employees?
- Preview: Legal entities and billing groups
- Exchange Rate And Wire Fees
What are deposits?
An employment deposit, sometimes referred to as Debit Note, is a refundable charge we invoice once the employment contract for the employee has been signed.
The deposit is held for the duration of the employee's employment with Horizons and the purpose is to be able to offset any cost arising from employment liability, since Horizons assumes all employment liabilities from you, our client.
The deposit consists of two elements: employee's regular gross monthly income + anticipated employer burden*
*Since the employer burden will only be confirmed once the first payslip has been created, we use an estimation for the purpose of calculating the deposit. This estimation is not necessarily the employer burden which will be charged in the employee's first month of employment, or subsequent months and is used purely for the deposit calculation.
The number of deposits charged can always be found in the signed Proposal and further information about the deposit, its calculation, usage and refund terms and conditions can be found in our Master Services Agreement.
Example of a calculation:
Below is a screenshot from the Proposal of the number of deposits charged, i.e. two (2) month's total cost of employment.
This employee is hired in Germany and has a gross monthly salary of €5,000, as well as gross monthly car allowance of €400. The employee is entitled to receive an annual commission of €10,000.
Calculation:
The regular gross monthly income = €5,400 gross
The annual commission is not included, since it is not fixed or guaranteed
Anticipated employer burden = €1,113.75
Total cost of employment = €5,400 + €1,113.75 = €6,513.75
Total deposit (2 months) = €6,513.75 * 2 = €13,027.50
We hope you found this article to be useful. Please contact support@joinhorizons.com should you have further questions.
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