Why am I being asked to pay for this month’s payroll before the month is over?

We begin to process salary payments around the 20th of the month because employees in most countries get paid on the 25th. By receiving payment for this invoice within the 14-day terms, we mitigate any cash flow concerns.

At Remote, we collect payment for your payroll upfront through a 2-step invoicing process:

1. On the 1st working day of the month, we issue a Pre-funding invoice.
   • This is used to cover payroll costs for the month.
   • You have 14 days to make payment.
2. Around the 5th of the following month, after analyzing your actual costs for the billing period:
   1. If your Pre-funding invoice amount was lower than the actual costs incurred, we will issue a Reconciliation invoice for you to pay the difference; you will have 14 or 30 days to make payment depending on the agreed payment terms
   2. If your Pre-funding invoice amount was higher than the actual costs incurred, we will issue a Reconciliation Credit to be applied to your next invoice.
   3. 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.

Note: If you incur charges for any value-added services (i.e. off-payslip costs) like health checks, termination and legal fees, and a-la-carte mobility services, these will be invoiced separately on the 1st of the following month and due within 14 or 30 days depending on the agreed payment terms 

See also: How does Remote invoice for value-added services (i.e. off-payslip costs)?