The Lightsource service pages reviewed for this guide direct businesses toward a consultation and do not establish a universal EOR price. A useful estimate therefore requires a proposal for your intended employee, location, compensation, and service scope. Lightsource business solutions.
Build two views of that proposal: the cost of employing the person over time and the cash your company must provide before particular dates. Combining these into one number can obscure both the true expense and the funding requirement.
Give the Provider a Defined Scenario
Request pricing for a specific role and work location, with the proposed salary or hourly arrangement, intended start date, and expected benefits.
If compensation includes commissions or bonuses, describe the structure. If the role involves travel or a possible location change, disclose that too. Ask which assumptions affect the proposal and which remain subject to review.
Avoid requesting only a headline “price per employee.” Even if that is how an administrative fee is expressed, it does not necessarily describe the entire arrangement.
Separate the Cost Components
Ask the provider to identify these categories and explain which apply:
- Gross compensation.
- Employer-side taxes and other employment charges.
- Benefits and insurance costs.
- Recurring service fees.
- Setup or onboarding charges.
- Additional processing or separately scoped services.
- Termination or transition charges.
- Deposits, reserves, or advance funding, if required.
These are questions for the proposal review, not a statement that Lightsource charges every item.
Also ask which amounts are estimates and which are fixed for a stated period. A quote is easier to evaluate when the reason for a later change is visible.
A Hypothetical Annual Budget
Consider an invented example for a full-year hire:
| Component | Assumption | Annual amount |
|---|---|---|
| Gross salary | $6,000 per month | $72,000 |
| Employer costs and benefits | Assumed $1,500 per month | $18,000 |
| Administrative service | Assumed $600 per month | $7,200 |
| Setup | Assumed one-time charge | $1,000 |
| Illustrative first-year total | $98,200 |
These figures are not Lightsource rates, tax calculations, or a market benchmark. They demonstrate how to organize a budget.
The recurring monthly amount in this example is $8,100. The $1,000 setup amount belongs in the first-year total but should not be mistaken for a recurring charge.
Replace every assumption with a supported figure before using the calculation to approve a hire.
A Deposit Is a Separate Cash-Flow Question
Suppose, purely for illustration, an agreement also requires a refundable $8,100 deposit and an $8,100 advance for the first month.
If both are due with the $1,000 setup charge, the initial cash requirement would be $17,200. That does not automatically mean the annual expense is the $98,200 example plus another full $17,200. The advance funds the first month already included in the budget, while the deposit’s treatment depends on its terms.
Ask when any deposit is returned, what deductions can be made from it, and whether it changes as compensation changes. Keep those answers alongside the cost estimate.
Resolve Cross-Border Payment Details
If your company funds the arrangement from outside the United States, ask which currency is invoiced and which payment methods are accepted. Establish who bears transfer charges, how exchange rates are determined if conversion occurs, and when funds are considered received.
Do not assume that sending funds on the deadline is equivalent to meeting the provider’s funding requirement. Request the relevant calendar and cutoff information.
These questions belong in the financial review even when payroll administration itself is outsourced.
Compare Proposals on the Same Basis
Use the same role, location, compensation, benefits assumptions, and contract period for each proposal. Mark differences in scope instead of allowing a cheaper-looking offer to conceal excluded work.
Read the EOR model guide before comparing different service arrangements. Use the payroll guide to understand the ongoing approval and funding work.
The final budget should identify what you expect to spend, when cash is required, and which unresolved assumptions could change either figure.