Understanding management fees and offboarding process with Remote

Article author
Barbara Campisciano
  • Updated

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.

Billing process for Management Fees

At Remote, we bill management fees from the employee’s start date up to their termination date. This approach ensures that our customers are only charged for the services rendered up to the point of termination. 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: The employee was terminated on December 5th, 2024, we will bill the full fee on the December 2024 reconciliation invoice, even if the employee's last salary is processed in January 2025.
  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 started on the 28th of December 2024 and received their first pay in January 2025. The first management fee will be fully billed in the December 2024 reconciliation invoice.

Reminder: annual fees are non refundable.

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