This article answers the most common questions about invoicing for clients with EOR employees hired through Deel.
For more information on hiring EOR employees, please see How to create a full-time employee contract
[ACCORDION] When are on-cycle invoices issued?
Deel issues on-cycle invoices for both monthly and bi-monthly countries on the 25th of every month.
The invoices are finalized by the end of business day, San Francisco, USA local time.
[ACCORDION] What is included in an on-cycle invoice?
The on-cycle invoice will be issued on the 25th of the month and will include the salary and employer cost of the current month, plus all additional requests and amendments that were uploaded in time.
This includes things like bonuses, approved expenses, and other allowances.
To be included in the current on-cycle invoice, all amendments must be uploaded to the platform after the 16th day of the previous month, and until the 15th of the current month.
[ACCORDION] What are the definitions for the fees and contributions that appear on the invoice?
Your invoice may include many different components, as explained below:
Salary |
The employee’s gross salary for the specific pay cycle. If the employee did not start on the 1st payable day of the month, the monthly salary will be prorated. It does not include things like bonuses, commission, expenses, allowances, or health insurance.
|
Statutory Employer Contributions |
This is the sum of all payments made by the employer to government agencies, social security, tax authorities, and other national departments. This sum is on top of the gross monthly salary, bonuses, allowances, and expenses.
|
Platform fee - 1 employee |
This is the management fee paid to Deel per employee. This amount is converted to local currency using the exchange rate at the time the invoice is issued.
|
Allowance |
Gross value of the allowance requested by the client to be paid to the EE.
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Bonus |
Gross value of the bonus requested by the client to be paid to the EE.
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Signing Bonus |
Gross value of the bonus requested by the client to be paid to the EE when creating the contract.
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Expenses |
Expenses uploaded by the EE to the platform and approved by the client.
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Employer Health Insurance Contributions |
Health allowance selected by the client when creating the contract.
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Health Insurance Fee |
If this is an optional benefit, Deel will charge a fee.
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Vacation Accrual Payout |
Gross amount paid to employee for vacation accrual.
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Severance Pay |
Gross amount paid to employee for severance when applicable.
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[ACCORDION] How do you calculate the platform fee on the invoice?
When you created the EOR contract for your employee, a management fee in USD was filled for that specific employee.
We convert this amount from USD into the local currency every month, based on the exchange rate at the time we issue the invoice, on the 25th of the month.25th EOD
[ACCORDION] What currency is used when invoices are issued to the EOR clients?
All EOR invoices are issued in the local currency from the country where the employee is employed.
[ACCORDION] Why doesn’t the salary of the month match the Annual Salary divided by 12?
Please consider that if the employee has not worked the full month, you will be charged a prorated salary based on the employee start date and the month’s end date.