What is an off cycle payment?

Article author
Nneka
  • Updated

At Remote, we have a global payroll cutoff on the 11th of each month at 11:59 PM UTC. This date is the deadline for including payments in the regular payroll run. If a payment needs to be requested outside this regular cycle, it's treated as an off-cycle payment. We implemented this process to accommodate onboardings, missed incentives, and approved expenses that were submitted before the payroll cutoff. Not all countries allow off-cycle payments.

Note: Exceptions to the standard payroll cutoff dates include Bulgaria and Germany, as well as other countries with semi-monthly payroll schedules. In Bulgaria, the cutoff is on the last day of the month. The cutoff date for Germany changes each month.

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Which countries are eligible for off-cycle payments?

We only process off-cycle payments in countries with a monthly payroll run. (in specific cases, we’ll run an off-cycle in countries with a semi-monthly payroll).

Criteria for off-cycle payments

  1. New hires who are onboarded between the 12th-24th of the month will automatically be enrolled in an off-cycle payroll run at no additional cost if they meet the criteria.
    1. If sign-on bonuses are due and agreed upon in the new hire's contract, they will be processed along with their pay. Such an incentive must be submitted by the Customer on or before the 11th of the month. See also: When will the employee get paid if they’re onboarded after the payroll cutoff?
  2. Off-cycle payments can be used to manage missed incentives and approved expenses that were submitted before the 11th-of-the-month payroll cutoff. For example:
    • An incentive of $400 was entered for an employee on the 8th of June. However, when the employee received their payment on the 25th of June, the incentive was mistakenly omitted and not included in the regular payroll run.
    • To correct this, an off-cycle request can be raised before the 27th of June (the off-cycle deadline). The missed incentive will be added to an off-cycle payroll run. As a result, the employee will receive the incentive on the 10th of July.
  3. If a payment has been missed, but there is a legal requirement for it to be paid by a specific date, an off-cycle payment will be processed. Examples of such payments are:
    • Relocation or sign-on bonuses that are due to be paid X days after the start date.
    • Court-mandated compensation payments
    • Termination payments. This will have to be mentioned in the termination letter, as it is not applicable in all cases.
  4. Off-cycle payments can be made to employees who experience incorrect deductions, such as being erroneously subjected to two weeks of unpaid leave. This can prevent financial hardship for the affected employees.

Off-cycle payment request process and deadlines

To request an off-cycle payment, please reach out to help@remote.com. The deadline for all off cycle payment requests that meet the criteria is the 27th of the month, 11:59 PM UTC. Any requests after this date will be rejected and paid in the next payroll cycle.

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