Invoice #1, which is used to pre-fund your payroll, is based on estimated costs for the month.
If your Pre-funding Invoice amount was lower than the actual costs incurred during that billing period, we will issue a Reconciliation Invoice for you to pay the difference.
While we do all we can to estimate the Payroll Pre-funding invoice amount is as close as possible to what the actual costs 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
- Off Payslips costs
- Other benefits
- Management fee
If your Pre-funding Invoice amount was higher than the actual costs incurred during that billing period, we will issue a Reconciliation Credit; this Credit Note will be applied to the next invoice when applicable.
If your Pre-funding invoice amount exactly matches the expenses incurred during that billing period, we will issue a 0 total reconciliation invoice, and no further action is required on your end.
All of your invoices and credit notes can be found under Service invoices in the Payments tab.
Note: Prior to May 2023, if your actual invoice was less than the Pre-Funding Invoice, a Reconciliation Invoice with a negative balance was issued; therefore, you may see those in the history of your Service invoices.
See also: Reconciliation invoice breakdown report