This article is for clients and explains how to submit, review, and approve payroll adjustments for EOR Employees.
Payroll adjustments include expenses, allowances, bonuses, and other variable payments.
If you want to use our Expensify Integration to manage employee expenses, please see our Expensify Integration Guide.
In this article:
Before you start
Invoice adjustments are payment items that can be added by you or your employee each payroll cycle.
These adjustments appear on your invoice and are paid out to the employee according to their local tax laws.
Types of adjustments
Adjustments include expenses, allowances, and other variable compensation like bonuses and commissions. For information about local legal requirements and tax treatment of certain adjustment categories please see the Expense and Adjustment Guide in your Client FAQ.
Expenses are reimbursable costs incurred by your employees for legitimate business purposes in the course of their employment. Expenses are usually not taxed. In some jurisdictions, certain categories of expenses may be subject to certain limitations.
Allowances are one-time or recurring fixed amounts paid by you as a benefit to your employees. Allowances are usually taxable. In some jurisdictions certain categories of allowances may be non-taxable subject to certain limitations.
Bonus and other incentive pay like commissions are performance related contractual or discretionary payments made to your employees in addition to their salary. These amounts are almost always taxable.
How to add a payment item adjustment
✅ Step 1 - Open the employee contract
(1) From your home page click (2) Add Item in the Payment items section.
(3) Select the contract from the dropdown list and click Next.
✅ Step 2 - Add adjustment details
Add the type and category of adjustment, amount, date, and item description.
All expenses require a supporting invoice or receipt, and a description of the business purpose. You can view local requirements where applicable, including limits and specific documentation requirements in the Client FAQ on the app.
You may set allowances and bonuses as recurring adjustments.
Your adjustment is added. You may go directly to the contract overview page to view it.
How edit or delete an adjustment
You can edit or delete adjustments before payroll cutoff dates.
✅ Step 1 – Go to Contracts tab and click on the desired contract
✅ Step 2 - View approved adjustments
You can click the upcoming payroll period in the (1) Next payment items, or click (2) Approved in the invoice details section.
Depending on the time of the month and your payroll cutoff dates, the adjustments that you can edit or delete may listed in different spots.
✅ Step 3 - Select the adjustment
✅ Step 4 - Edit or delete the adjustment
If you want to edit the adjustment, click Edit, make your required changes to the adjustment, and click Update.
If you want to delete the adjustment, click Delete and Yes, Remove to confirm
How to review invoice adjustment requests
Your employees can also submit invoice adjustment items. You're able to review and either approve or deny them.
✅ Step 1 – Open the employee contract
✅ Step 2 – Click Pending
All adjustments that are pending your review will be listed.
You can review any adjustment attachments, such as receipts.
✅ Step 3 – Click Deny or Approve
You must provide a reason for denying an adjustment.
What is the deadline for submitting and approving an adjustment before payroll?
If you want an adjustment to appear on the soonest possible payroll, then they need to be approved before the payroll cut-off date. Depending on whether the employee works in a country with monthly or bi-monthly payroll, the cut-off dates are:
Monthly: End of day (EOD) US Pacific time, on the 15th day of the month.
Bi-monthly: Either EOD US Pacific time, on the 1st day of the month, or EOD US Pacific time on the 15th day of the month.
What happens if I don't approve an expense in time for payroll and I miss the cut-off date?
Can I set a recurring adjustment?