This the Season to Be Jolly - Salary Time

I need a valium. We are in the process of developing a form for each individual in this office that states the total amount of money my company will pay and then breaks that down into the individual's take home, taxes paid by the company, taxes paid by the individual, social insurance paid by the company, etc.

We are doing this because EVERY YEAR my secretary comes to me and says I didn't understand or the individual didn't understand and therefore I have to pay more. I've been here for 2.5 years. I understand. I think I'm being played. That isn't going to happen any more with this new form. Everyone signs, everyone gets a copy.

I've been thinking I was paying incoming associates with no experience $14,000. No. I've been paying them $21,000. I can't tell you the number of conversations I've had about this explaining exactly what I intend. Goes nowhere.

Here are some of the differences between US/China compensation.

Gross Salary US
Everything annualized

Gross Salary China
Employee's take home plus employees share of taxes per month

There doesn't appear to be an English word for our "gross" because they don't care how much I have to pay. Just like I don't care what their take home is.

Gross Annual Salary US
Ditto

Gross Annual Salary China
monthly take home plus individual taxes * 13

The thirteenth month salary is standard fare here. If I say I plan to pay Jane no more than $12,800 and leave it at that I'm in for a big surprise. Jane's US$12,800 per year salary is converted into $31,057 in a blink of an eye.

Jane's take home plus taxes each month will be 12800 RMB or US$1,706.
My cost will actually be:
Jane's monthly take home = $1,706
Monthly taxes and social insurance = $683
Monthly total = $2389
Annual cost (monthly total * 13) $31,057.

Even though the 13th month is intended to be bonus, they of course expect a bonus on top of that.

My secretary/paralegal who is in charge of this is also one of my favorite people here. If it were anyone else coming in with this bad news, I would have thrown them out the window. As it is, I'm willing to explain for the 100th time that I DO NOT CARE what someone's take home is. Do not come in my office with that information. It is absolutely and completely useless to me. I don't budget people's take home. I budget the size of the check that has to clear each month in order to keep this place operating.

My "mistakes" are now much smaller, but they still cost money and I still lose my cool because I'm quite certain it is no longer "my fault".