What is reserve payment in Contractor of Record?

Article author
Deepthi
  • Updated

Remote collects a risk reserve payment every time you onboard a contractor. Because Remote is responsible for paying contractors, this reserve ensures that if customer payments are not on time, contractors may still be compensated for their services.

The reserve acts as a safeguard, since Remote takes responsibility for paying contractors under 30-day payment terms. If a client doesn’t pay their contractor services invoice within this period, the reserve ensures there are enough funds to cover possible contractor invoices. Reserve payments are calculated based on the contractor’s invoice amount, ensuring alignment with their agreed compensation.
See also: How to pay a reserve invoice in contractor of Record? 

 

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