4 ms·

I don't know if it is different were Lenovo operates, bu there in Sweden if i get 100 in salary, the company has a cost of 200 because of social taxes, employme

by thecopy 11y ago

I don't know if it is different were Lenovo operates, bu there in Sweden if i get 100 in salary, the company has a cost of 200 because of social taxes, employment tax etc.. I guess also HR will have less to do, which contributes to the cost-save.

mike-cardwell 11y ago
Yeah. Employee cost > employee salary. Still... $421,875... Somebody has got their math wrong.
- zamalek 11y ago
  ~~Taking Sweden as the example the take-home salary would be $126000pa. That's not entirely unreasonable.~~ Edit: scratch that, I read it as "the company has an additional cost of 200" for some reason. Yeah, something is wrong with the math.
leogiertz 11y ago
I'm not sure you can count what you get after taxes as salary, your personal taxes is normally considered part of your salary. The "arbetsgivaravgift" (i.e. taxes that your employer pays) is about 30% of your salary, so if you're going to get a salary of 100 that costs your employer about 130. The cash you get in hand varies depending on your personal tax rate, but normally you would receive between 50 and 70. Edit: This is for Sweden. YMMV. :)
- iofj 11y ago
  Very true. There is a legal standard for "gross" pay which is not gross pay at all. In Northern countries gross pay is ~20-35% lower than the employer pays, and after that the employee also pays 40-55% on the "gross" amount after that. (Example "non-gross" income tax: patronal national insurance tax, corporation closure insurance tax, tax on vacation pay, tax for employment of permanently disabled persons, ... It totals ~18% in Germany, up to 38.5% in Belgium, depending on the sector (specific sectors have specific taxes - yes really)) These sorts of measures make sure that taxation is a lot less visible for "normal" people (ie. voters) in Europe than it is in America. Employers have to advertise "net pay", which is the amount you generally negotiate for. Also, for instance, the prices displayed in stores have to be tax-inclusive (there's a VAT of 18-25% as well), the prices displayed at the pump include all taxes (not just VAT), tobacco and alcohol have to be advertised with prices including all taxes. That means a European kid might very well not hear the word "tax" until they're 24-25 and get a real, first job, and will likely think they're only paying an income tax of 40-55%, when in fact they are paying a tax of 1/1.200.60.82 = 61% (and up to 76%) (money that they can spend divided by money that is paid for their labour, inverted). And that still doesn't include property tax, car tax, and the like.
NeutronBoy 11y ago
Companies also have to provide services to employees. Less employees == less office space, less IT equipment, less IT support, less cleaning, less HR overhead, ... etc.

by thecopy 11y ago

mike-cardwell 11y ago

Yeah. Employee cost > employee salary. Still... $421,875... Somebody has got their math wrong.

zamalek 11y ago
~~Taking Sweden as the example the take-home salary would be $126000pa. That's not entirely unreasonable.~~ Edit: scratch that, I read it as "the company has an additional cost of 200" for some reason. Yeah, something is wrong with the math.

leogiertz 11y ago

I'm not sure you can count what you get after taxes as salary, your personal taxes is normally considered part of your salary. The "arbetsgivaravgift" (i.e. taxes that your employer pays) is about 30% of your salary, so if you're going to get a salary of 100 that costs your employer about 130. The cash you get in hand varies depending on your personal tax rate, but normally you would receive between 50 and 70. Edit: This is for Sweden. YMMV. :)

iofj 11y ago
Very true. There is a legal standard for "gross" pay which is not gross pay at all. In Northern countries gross pay is ~20-35% lower than the employer pays, and after that the employee also pays 40-55% on the "gross" amount after that. (Example "non-gross" income tax: patronal national insurance tax, corporation closure insurance tax, tax on vacation pay, tax for employment of permanently disabled persons, ... It totals ~18% in Germany, up to 38.5% in Belgium, depending on the sector (specific sectors have specific taxes - yes really)) These sorts of measures make sure that taxation is a lot less visible for "normal" people (ie. voters) in Europe than it is in America. Employers have to advertise "net pay", which is the amount you generally negotiate for. Also, for instance, the prices displayed in stores have to be tax-inclusive (there's a VAT of 18-25% as well), the prices displayed at the pump include all taxes (not just VAT), tobacco and alcohol have to be advertised with prices including all taxes. That means a European kid might very well not hear the word "tax" until they're 24-25 and get a real, first job, and will likely think they're only paying an income tax of 40-55%, when in fact they are paying a tax of 1/1.200.60.82 = 61% (and up to 76%) (money that they can spend divided by money that is paid for their labour, inverted). And that still doesn't include property tax, car tax, and the like.

NeutronBoy 11y ago

Companies also have to provide services to employees. Less employees == less office space, less IT equipment, less IT support, less cleaning, less HR overhead, ... etc.