In this episode, we’ll explain everything you need to know to forecast the cost of your international workforce accurately.There are five key factors for determining the overall cost of your employee:<ol><li>Gross annual pay</li><li>Payroll taxes</li><li>Onboarding and recruiting costs</li><li>Statutory benefits</li><li>Tax considerations</li></ol>

Determining how to calculate employee cost for a global team can be a heavy lift for internal HR teams.ChapterIn This VideoHi. I’m Ashley with Velocity Global. In this video, we’ll walk you through everything you need to know so you can accurately forecast the cost of your international workforce.There are five key tenets for determining the overall cost of your employee.The first step in calculatingChapterStep 1: Gross Annual Payemployee cost is determining gross annual pay for each team member. This includes base salary and any bonuses, commissions, or allowances they receive.Make sure to account for salary adjustments, promotions, and currency conversions if you’re dealing with multiple currencies within your team.Next, calculateChapterStep 2: Payroll Taxespayroll taxes, income tax, social security, and other mandatory deductions.The tax landscape can vary quite a bit from country to country, so it’s crucial to stay up to date on local tax laws and rates to ensure your calculations are accurate.Third, factorChapterStep 3: Onboarding and Recruiting Costsin your onboarding and recruitment costs. This includes expenses for job postings, recruitment agencies, background checks, and relocation packages.Fourth is statutory benefits.ChapterStep 4: Statutory BenefitsMandated benefits vary significantly from country to country. Common mandated benefits include health insurance, retirement plans, and paid leave. This is another area where it’s important to know the local labor laws and regulations to ensure accurate calculations.And finally, taxes.ChapterStep 5: TaxesTax considerations are critical as employers often are responsible for withholding and remitting taxes on behalf of their employees. Employees may also have tax obligations that you need to be aware of. Ensure that you’re familiar with tax treaties, double taxation agreements, and any tax-saving options for your international team members.Now, let’s explore how hiring a distributed teamChapterHiring a Distributed Team for Cost-Efficiencycan help reduce costs.Going global can provide access to cost-effective talent. Hiring in regions with lower living costs can lead to significant savings in terms of salary expenses.Distributed teams offer more flexibility, allowing you to tap into a much bigger global talent pool. With a distributed team, you can minimize expenses related to office space, utilities, and equipment.You can say goodbye to geographic boundaries and hire the right talent at the right price, no matter their location.And finally, a distributed team can quickly adapt to changing business needs, scaling up or down as needed without the costs associated with traditional hiring and onboarding.ChapterConclusionWe hope this video helps you accurately forecast costs for your international hiring strategy. Calculating the cost of your international team is no small feat, but remember, hiring a distributed team can be a strategic move to reduce employee costs while accessing a humongous global talent pool.

Video: How to Calculate Employee Cost

Accurately budgeting workforce costs

Estimate the cost of your global workforce by understanding five key factors: gross annual pay, payroll taxes, onboarding costs, statutory benefits, and tax considerations.

Video Summary
In this episode, we’ll explain everything you need to know to forecast the cost of your international workforce accurately.
There are five key factors for determining the overall cost of your employee:
Gross annual pay
Payroll taxes
Onboarding and recruiting costs
Statutory benefits
Tax considerations
Transcript

Determining how to calculate employee cost for a global team can be a heavy lift for internal HR teams.
Chapter
In This Video
Hi. I’m Ashley with Velocity Global. In this video, we’ll walk you through everything you need to know so you can accurately forecast the cost of your international workforce.
There are five key tenets for determining the overall cost of your employee.
The first step in calculating
Chapter
Step 1: Gross Annual Pay
employee cost is determining gross annual pay for each team member. This includes base salary and any bonuses, commissions, or allowances they receive.
Make sure to account for salary adjustments, promotions, and currency conversions if you’re dealing with multiple currencies within your team.
Next, calculate
Chapter
Step 2: Payroll Taxes
payroll taxes, income tax, social security, and other mandatory deductions.
The tax landscape can vary quite a bit from country to country, so it’s crucial to stay up to date on local tax laws and rates to ensure your calculations are accurate.
Third, factor
Chapter
Step 3: Onboarding and Recruiting Costs
in your onboarding and recruitment costs. This includes expenses for job postings, recruitment agencies, background checks, and relocation packages.
Fourth is statutory benefits.
Chapter
Step 4: Statutory Benefits
Mandated benefits vary significantly from country to country. Common mandated benefits include health insurance, retirement plans, and paid leave. This is another area where it’s important to know the local labor laws and regulations to ensure accurate calculations.
And finally, taxes.
Chapter
Step 5: Taxes
Tax considerations are critical as employers often are responsible for withholding and remitting taxes on behalf of their employees. Employees may also have tax obligations that you need to be aware of. Ensure that you’re familiar with tax treaties, double taxation agreements, and any tax-saving options for your international team members.
Now, let’s explore how hiring a distributed team
Chapter
Hiring a Distributed Team for Cost-Efficiency
can help reduce costs.
Going global can provide access to cost-effective talent. Hiring in regions with lower living costs can lead to significant savings in terms of salary expenses.
Distributed teams offer more flexibility, allowing you to tap into a much bigger global talent pool. With a distributed team, you can minimize expenses related to office space, utilities, and equipment.
You can say goodbye to geographic boundaries and hire the right talent at the right price, no matter their location.
And finally, a distributed team can quickly adapt to changing business needs, scaling up or down as needed without the costs associated with traditional hiring and onboarding.
Chapter
Conclusion
We hope this video helps you accurately forecast costs for your international hiring strategy. Calculating the cost of your international team is no small feat, but remember, hiring a distributed team can be a strategic move to reduce employee costs while accessing a humongous global talent pool.