## Monday, December 14, 2009

### How to analyse countries side by side?

Question: I am the CFO for a company who has staff working on projects in around 20 countries. How can I use your product to put these countries side by side in one analysis.

Answer: The best solution would be to run a report for each location using your HQ as the from location in each case. You will then have detailed cost of living reports for each country and can analyze the data across all 20 in a spreadsheet.

## Sunday, December 13, 2009

### cost of living per diem rate question

Question: How can I run a report of what a per diem rate should be for a Canadian employee who is traveling on business to the UK. I want the information to cover the cost of food and miscellaneous expenses but not the cost for hotel or transportation.

Answer: We suggest you use the SPPP (Salary Purchasing Power Parity) Calculator. For food use “Groceries” and for miscellaneous expenses use all or some of the following, “Miscellaneous”, “Personal Care”, and “Recreation and Culture”. Please note that restaurants and Meals out are covered in the same category as hotels. Public transport is included in transportation. The way to use the calculator for a per diem rate is to select only the above as “Paid from Salary”. The way to exclude the other basket items is to select them as “Provided”. In the salary field use the local per diem rate in Canada and select the appropriate UK city as the “to” location. The calculator will calculate the amount of per diem needed in the UK to have the same purchasing power as in Canada.

## Saturday, December 12, 2009

### Cost of living questions

Question: I wonder in what way tax pressure and cost regarding social security are taken into account. As far as I can see the gross salary is calculated and not the net salary. Because of great differences in tax pressure, using the gross salary might give a somewhat less correct outcome.

Answer: The calculator does not take tax into account. Most users use their net/after tax salary as the basis for the calculation. This will calculate the equivalent net salary in the other location. You would then gross up the net salary by the amount of tax to arrive at a gross salary in the other location.