This article explains the upfront billing procedure on Deel (sometimes called the Advance Fee payment) and how clients can use billing credits to pay eligible Deel fees on the platform.
Please note that Deel billing credits are maintained at the organization level, and a client cannot direct credits to be applied only for a specific entity, team or product.
In this article:
How billing credits are applied
Product fees covered by billing credits
What is upfront billing and how does it work?
Generally speaking, upfront billing is agreeing to pay Deel for all fees at the beginning of a contract and committing to an agreed-upon number of products or contracts over a predetermined duration. Invoices will be generated once the client agrees to sign an order form.
Once a client commits to that order form, Deel will generate at least one Upfront Billing Statement. After the client pays the upfront statement, billing credits will be added to the account.
These credits are used to pay all covered fees, and this will lower the amount that the client must pay.
Please note that only org admins will be able to see an organization's billing credits balance on the app.
How are Deel billing credits applied?
Org admins can review the billing credit balance in the Billing & Payments card under Organization Settings.
✅ Step 1 - Select Pay to initiate the payment flow
The credit will automatically be applied to all eligible upcoming payments.
✅ Step 2 - Select the invoices to be paid and click Continue
✅ Step 3 - Choose how to pay
✅ Step 4 - Available billing credits will be applied to the payment, and client can review the deduction
If the credits don't fully cover the owed fees, the client will have to pay the remaining amount
Product fees covered by Deel billing credits
Clients can use Deel billing credits to pay for the following:
- Contractors
- Fixed amount SaaS fees
- % amount SaaS fees
- Deel Premium fee
- Deel COR
- EOR
- EOR fees
- Global Payroll
- US Payroll Fees
- PEO
- Deel HR
- Entity Creation and Maintenance Fees
- Standalone service fees
- Equipment
- Hofy Equipment fee
- Background check
- Deel Engage
- Benefit Contract Fee
- Standalone mobility fees
- Legal Consulting Fees
- Legal Equity Fees
- Late Payment Fees
Fees that are included in an EOR worker's invoice are not covered by billing credits. This may include EOR benefits, mobility, and equipment fees.
Please contact us to learn more.
FAQs
[ACCORDION] When are invoices paid, and when are they issued?
The initial invoice is issued immediately after the Order Form contract is signed and is due according to the net terms specified in the agreement.
Subsequent invoices will be issued consistently on the 25th of the prior month.
The invoice frequency and cadence timeline depend on a number of factors, including contract length and payment terms. Invoices could be paid in installments of annually, semi-annual, quarterly, and monthly.
Example: 1-year agreement, $12,000 Annual Cost
- Annual: One invoice of $12,000
- Semi-Annual: Two invoices of $6,000 each
- Quarterly: Four invoices of $3,000 each
- Monthly: Twelve invoices of $1,000 each
Note: The logic outlined in the example above applies to recurring fees. One-time implementation and upfront costs will always be included in the first invoice of a specific year.
[ACCORDION] When do billing credits become available on the client's account?
Deel billing credits become available in the account as soon as the first upfront billing statement is paid and the funds are received by Deel.
This means that billing credits can only be applied after the payment for the first upfront statement has been receivced and processed.
[ACCORDION] Is an order form legally binding?
Yes, an order form is a legally binding agreement between the customer and Deel.
It outlines commercial terms and the fees the customer is expected to incur, including any discounted pricing, and specifies the amount Deel will bill the customer ("Order Cost") for each year of the order term.
[ACCORDION] Can clients specify which billing credits go toward which worker types?
No. Billing Credits are per Organization, and they're used flexibly for any fees and for any applicable workers within that single organization.
For example, Deel can't specify which credits will apply to EOR, and which go to Global Payroll fees.
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