A balance sheet, also known as a compensation worksheet, outlines the remuneration package that is paid for the duration of an international assignment. A remuneration package is an employee benefits package that includes cash incentives like salary, bonuses, allowances, and commissions as well as non-cash incentives such as paid time off, flexible work schedules, or access to a company vehicle. Remuneration packages also specify deductions, such as hypothetical taxes, which are estimates of the amount of tax that the employee would have to pay if the employee remained in the home country.
The balance sheet approach is a common form of expat compensation U.S. multinational companies take when remunerating employees. The main emphasis of the balance sheet is to pay expatriates comparably to employees in the same or similar positions in the home or base country, keeping them whole from a financial perspective while they are on assignment.