The costs output by Home Country Employer Portion Social Tax and Home Country Payroll Tax are the calculated costs on annual income (annual base compensation, allowances, and tax grossup) less costs on the non-assignment portion of base compensation, i.e., the non-assignment portion of Employer Social Tax on Hypothetical Income and Payroll Tax on Hypothetical Income.

As an example, consider an employee who goes on a three-month assignment to a location with a 10% employer contribution rate.

The Work Time Split and Include Home Work Time Costs features in WICE are useful if an employee spends time on a project in the home and host location.

When the work time split feature is utilized and home work time costs are included, the costs output by Employer Social Tax on Hypothetical Income and Payroll Tax on Hypothetical Income will be calculated for the total work time months. When home work time costs are not included, these outputs will be calculated for months in the host location only (i.e., Months in Host).

Similarly, when home work time costs are included, Home Country Employer Portion Social Tax and Home Country Payroll Tax will output calculated costs on annual income less costs on the non-project portion of base compensation. When home work time costs are not included, these tax outputs are annual costs less costs related to the time spent in the home country regardless of whether the employee is working on the project.

Continuing with the above example, if the employee spends three months in the home country working on the project and Include Home Work Time Costs is enabled, the assignment portion of employer social tax is 6,636. The increase is due to the inclusion of the employer tax on base compensation while working in the home location. If Include Home Work Time Costs is not enabled, the assignment portion of employer social tax is USD 3,636, which is the same amount calculated above without use of the work time split feature.