Got questions about what Deel Shield is all about? We have answers.
This article covers some of the most Frequently Asked Questions from clients about Deel Shield.
How much does Deel Shield cost?
Deel Shield pricing comes with a management fee of 15% of the contractor's monthly salary.
Alternatively, you may choose to pay a flat monthly fee of $325 USD instead.
Please contact us and provide more details about your hiring goals, and we will be in touch!
Is a deposit required for Deel Shield?
For Deel Shield, deposits are only required for Fixed Rate contracts, not for Pay As You Go or Milestone contracts.
Since Deel takes on all the liability and the indemnification for this contractor, we are obligated to the pay the contractor their wages even if a client does not make the payment to us.
For the deposits, we require a one month security of the contractor wages plus the Deel fee to hold in case of emergency.
Deposits are held on the balance sheet of Deel Inc., in our bank accounts with JP Morgan Chase at 270 Park Avenue, New York, NY.
How is Deel Shield different than Deel Premium?
With Deel Shield, Deel legally hires the contractor on your behalf.
With Deel Premium, you still hire the contractor and sign the contract with them, but you are protected in the event of misclassification legal action.
Can contracts be backdated for Deel Shield?
No, we can not backdate any contracts when using Deel Shield.
Can I offer stock options for contractors on Deel Shield?
No, it is not possible to issue stock options to contractors hired through the Shield model.
What payment cycles can I use?
There are no restrictions on the payment cycles. You can choose the cycle that works best for you to pay your contractors.
The Shield management fee will be invoiced according to Deel’s cycle, generally around the 26th of the month.
Is there a minimum notice period for Deel Shield?
Yes, the minimum notice period is 30 days for Deel Shield.
The notice period will be paid out even if the contractor stops working for you before the 30 day period is up.
You can breach the notice period on the contract only if the contractor has resigned.
Can we offer Equipment for contractors on Shield?
Yes, but equipment rentals are restricted only to mobiles and laptops.