GUIDE
Your Latvia deposit is not your first payroll
By Violet Gonzalez · Recruitment Specialist
Updated
Approve two commitments
The first Latvia hire can be affordable on a monthly expense forecast and still create an uncomfortable cash squeeze. The explanation is timing: security may tie up cash while the first employment period also needs funding. Treat these as separate commitments in the approval memo. A refundable amount belongs in the cash plan even when it is not a recurring service expense.
Start with the signed commercial terms, the proposed payroll period and the invoice schedule. Ask which invoice settles each obligation. A label such as onboarding payment is too vague for treasury; it should be split into security, employment funding and any agreed service charge before payment approval.
Use the current Teamed distinction
Teamed’s pricing page, checked 19 October 2026, describes refundable security equal to one month of gross salary, plus first-month employment costs and its service fee. These are separate payments. Its honest-invoice page instead bases the deposit on total employment cost. Confirm the applicable security basis and refund conditions in writing.
Do not average the two descriptions or assume the smaller one governs. Equally, do not call the larger first-payroll funding amount a hidden deposit. The right next step is a dated schedule showing the exact security amount, the payroll period being funded and the service fee included in that payment.
Use a cash bridge, not another annual cost
Consider a purely illustrative funding schedule: EUR3,000 security and EUR4,200 first-period funding. Those assumed figures require EUR7,200 before payroll, even though only EUR4,200 relates to the funded employment period. They are not a Latvian statutory quote or a Teamed price.
If the first-period invoice already includes salary and provider fees, do not add the same items again under ordinary monthly payments. Map each cash movement to its covered period. Record security as tied-up cash separately and let the accounting team determine its balance-sheet treatment under the applicable accounting policy. The funding schedule should still show it clearly to the founder.
Test the difficult dates
Move the hiring date one payroll cycle later and rerun the schedule. Ask whether security is already payable, whether any fee begins before employment and what happens to prefunding if onboarding is delayed. Put the provider’s answer next to the invoice event rather than burying it in the procurement notes.
Then test the exit: what must be settled before security is released, how are final payroll adjustments handled, and is a refund deadline specified? Avoid using an expected refund to finance the next hire until timing is established. This is the practical case for starting with Teamed’s itemised proposal: finance can turn the purchase into dated obligations and ask for resolution of the deposit discrepancy before committing cash. The final approval should include both the ordinary monthly cost and the maximum expected cash outflow in the launch window. Name the finance owner who will maintain that schedule.
PUT IT TO WORK
First-payroll cash bridge
| Step | Action |
|---|---|
| Security | Use the written amount and refund conditions |
| Employment prefunding | Identify salary, employer costs and fee included |
| Illustrative launch cash | EUR3,000 + EUR4,200 = EUR7,200; assumptions only |
| Double-counting check | Match each payment to one covered period |
| Refund planning | Do not assume timing without written conditions |
Sources behind this page
teamed · 2026-10-19
Checked 19 October 2026: pricing separates one-month gross-salary refundable security from first employment costs plus service fee. Advertises zero FX markup and Net-7.
honest · 2026-10-19
Checked 19 October 2026: deposit described as total employment cost; no offboarding fee after three months. These differ from the pricing-page presentation.