We issue the Reconciliation invoice (Invoice #2) after the Payroll Pre-funding invoice (Invoice #1). The Reconciliation invoice, will compare costs actually incurred during the month to the amount collected on Invoice #1, the Payroll Pre-funding invoice. While we do all we can to ensure the Payroll Pre-funding invoice amount is as close as possible to what the actual charges will be, there are several common factors that can cause discrepancies: employees onboarding or off-boarding during the month, changes in local regulations, benefits changes, and variability in leave/working hours for each employee. Many of these factors can’t be known until the exact time payroll is run.
The Reconciliation invoice includes:
- Base monthly salary
- Employer monthly social contributions
- On Payslip Benefits
- Management fee
- Off Payslips costs
- Other costs
This is what a Reconciliation invoice with an outstanding credit looks like.
Previously Billedcolumn of the invoice shows the amounts we've billed you previously (on the Payroll Pre-funding invoice), by category. This is to allow you to have one consolidated invoice that includes all amounts.
Final Actualcolumn is the actual payroll costs for that month, and includes all items discussed above.
Net Dueis the total of these two, and can result in a positive or negative number. A customer has to pay the net total of the Payroll Pre-funding and Reconciliation invoice each month.