--- name: deel-payroll-cost-estimate description: Estimate what it costs to employ someone in a given country, or compare Employer of Record (EOR) against setting up a local entity, using the Deel cost and take-home calculators. States its assumptions, keeps currencies explicit, and presents figures as estimates rather than quotes. Use when the user asks what a hire will cost, what take-home pay looks like, how much an EOR costs versus an entity, or wants a cost comparison across several countries. --- # Estimate the cost of employing someone The useful answer is a **cost range with its assumptions written down**, not a single number. A figure without salary basis, currency and scope is a guess that will be quoted back later as if it were binding. Your job is to make the inputs explicit, run the right calculator, and say clearly what the output does and does not include. ## 1. Pin down the inputs before calling anything Ask for, or confirm, each of these. Do not invent defaults for the ones that move the answer: - **Country** where the person will work. Cost is driven by the work location, not the company's head office. - **Gross salary, and its currency**, and whether it is annual or monthly. Confirm the pay period every time; a monthly figure read as annual is a 12x error. - **Employment type** if the user has one in mind (full-time, part-time, contractor). Do not assume. - **Start date**, only if the user asks about a specific period or currency conversion date. - **Comparison target**, if the question is EOR versus entity: how many people, and in how many countries. If the salary is missing, ask for it. Do not calculate on a placeholder and present it as the cost. ## 2. Choose the right calculator for the question Match the question to the tool, then keep the tools separate in your reasoning: 1. **Total employer cost for one hire in one country:** `calculate_employment_cost`. This answers "what does this hire cost the company". 2. **Same salary across several countries at once:** `calculate_employment_cost_for_multiple_countries`. Use it for location shortlists. Keep the salary basis identical across countries, or say that the comparison is not like for like. 3. **What the employee actually receives after deductions:** `calculate_take_home_pay`. This is a different question from employer cost. Do not present take-home as the cost, and do not present cost as what the employee keeps. 4. **EOR versus setting up a local entity:** `calculate_eor_versus_entity_hiring_costs`. Use it when the user is deciding how to hire, not only what a hire costs. Take the output as a comparison basis, not a complete business case: entity running costs, legal and accounting overhead, and tax registration are outside what the figures can settle unless the output shows them. Run the cost calculator first. Use take-home only when the user asks about the employee's net pay. ## 3. Check the output before you report it Read each result against these checks: - **Currency.** Confirm the currency of every figure. If the user's reporting currency differs, state the conversion basis and date. Do not mix currencies in one total. - **Period.** Confirm whether the figure is annual or monthly, and report it in the same period as the input. - **Components.** List what is included (salary, employer taxes and contributions, benefits, EOR fee if applicable) and what is not. Only state components that the output actually shows. - **Reasonableness.** If the total is far from the salary multiplied by a plausible overhead, re-check the inputs before reporting. Do not "explain away" a surprising figure. ## 4. Compare on like terms only A comparison is valid only when the salary, currency, period and hire count are identical across options. If the user changes one input mid-way, rerun all options. When presenting a shortlist, sort by total cost and state the gap in absolute and percentage terms. ## Common patterns and traps - **Gross versus net confusion.** The most frequent error. The employer cost is higher than the salary; the employee's take-home is lower. Keep the two labelled separately throughout. - **Annual versus monthly.** Ask, then state the period beside every number. - **Currency drift.** A single-currency answer for a multi-currency question hides exchange exposure. Note the currency and the date used. - **Partial inclusion.** An EOR fee shown separately from the employment cost is easy to forget in the total. Make sure the total you report matches what the components add up to. - **Entity cost left out.** An entity-versus-EOR comparison that counts only the headline fee understates the entity side. Say what the comparison does not capture. - **Presenting an estimate as a quote.** Calculator output is an estimate for planning. It is not a binding offer, a tax opinion or legal advice. Say so every time. - **Changing the salary to hit a budget.** If the user asks "what salary fits this budget", solve backwards and say that you did, rather than quietly lowering the salary input. ## Output ``` Estimate: , Employer cost: () Components included: Components not included: Take-home (employee, if asked): Comparison (if requested):