How Much Do I Pay for an Employee With Companio Work?
All employees, including Estonian ones, will be incorporated into the Companio Work system for management and administration purposes.
During the first month, you will receive two invoices. We will use a Spanish Customer Support Agent as an example:
Regular Monthly Invoices: Every month, including your first month, you will receive a standard invoice covering:
Your gross salary of 2000€: This translates to approximately 1600€ net on this example.
Social security contributions of €556: Includes social taxes, unemployment insurance, and other mandatory benefits.
Monthly service fee of €590: This fee is specific to Spain-based employees; rates vary by country.
First Month One-Time Charges: In addition to your regular monthly invoice, your first month will include a separate invoice for:
Registration Fee: That includes a One-time payment of 290€, required for initial employee registration. It will never be charged again during your employment.
Security Deposit: In this example, the amount would be 2556€ (calculated as €2000 gross salary + €556 social charges). This deposit is fully refundable at the end of your employment. It serves as a financial safeguard for both parties.
So, in this case, the total amount for your first month would be €5992 (regular monthly invoice of €3146 plus one-time charges of €2846), and for subsequent months, you will only pay the regular monthly invoice of €3146.
You can calculate how much you would have to pay for hiring an employee here, but please note that the calculation does not include VAT (22%), which will be reimbursed later.
In addition, the amounts are approximate. It's just an estimate, and there can be a variation of up to 5% (but generally much less). This is because the taxes on employee salaries depend on various factors, including their tax residence, marital status, family situation, or length of employment.
If you would like us to provide an estimate, don't hesitate to contact us.
Once we have sent that estimate, you can reject it if you disagree. In that case, you will need to ask those employees to register as freelancers in their country and invoice your company.
During the first month, you will receive two invoices. We will use a Spanish Customer Support Agent as an example:
Regular Monthly Invoices: Every month, including your first month, you will receive a standard invoice covering:
Your gross salary of 2000€: This translates to approximately 1600€ net on this example.
Social security contributions of €556: Includes social taxes, unemployment insurance, and other mandatory benefits.
Monthly service fee of €590: This fee is specific to Spain-based employees; rates vary by country.
First Month One-Time Charges: In addition to your regular monthly invoice, your first month will include a separate invoice for:
Registration Fee: That includes a One-time payment of 290€, required for initial employee registration. It will never be charged again during your employment.
Security Deposit: In this example, the amount would be 2556€ (calculated as €2000 gross salary + €556 social charges). This deposit is fully refundable at the end of your employment. It serves as a financial safeguard for both parties.
So, in this case, the total amount for your first month would be €5992 (regular monthly invoice of €3146 plus one-time charges of €2846), and for subsequent months, you will only pay the regular monthly invoice of €3146.
How Do I Accurately Calculate How Much I Have to Pay For Hiring an Employee Using Companio Work?
You can calculate how much you would have to pay for hiring an employee here, but please note that the calculation does not include VAT (22%), which will be reimbursed later.
In addition, the amounts are approximate. It's just an estimate, and there can be a variation of up to 5% (but generally much less). This is because the taxes on employee salaries depend on various factors, including their tax residence, marital status, family situation, or length of employment.
If you would like us to provide an estimate, don't hesitate to contact us.
Once we have sent that estimate, you can reject it if you disagree. In that case, you will need to ask those employees to register as freelancers in their country and invoice your company.
Updated on: 17/01/2025
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