Understanding management fees and offboarding process with Remote

At Remote, we strive to ensure there's clarity around management fees, particularly during the offboarding process.

What are Management Fees?

Management fees are charges incurred every time a payslip is generated for an employee. These fees cover the operational costs associated with payroll processing, including administrative overheads, software maintenance, and compliance management. It's essential to note that these fees are outlined in our Terms of Service (ToS) and are necessary to maintain the quality and reliability of our services.

Why are Management Fees applied during offboarding?

When an employee's status is set to Active, they are included in the pre-funding invoice, regardless of their impending offboarding. This inclusion is often a result of timing, as pre-funding invoices are issued on the first working day of the month. Consequently, any actions taken after this date may still incur management fees due to the processing involved.

Billing process for Management Fees

At Remote, we bill management fees to the customer from the employee’s start date until the issuance of their last payslip. This approach ensures that our customers are only charged for the services rendered up to the point of offboarding. It’s important to note that our costs remain consistent, whether we process payroll for a single day or an entire month, so our fees are not pro-rated.

1. When a termination occurs after the payroll cut-off date, the client will be charged the management fee for the next month.
   Example: Termination date December 31, 2023 the client will be charged for January 2024, even if the employee was not employed.
2. The employee is terminated before the cut-off date, but if the payment is received in the next month, the client will be charged the management fee for the next month.
   Example: The employee was terminated on December 5th, 2023, but the payment was made in January, the client was charged for January 2024.