At Remote People, our invoicing system is designed to be transparent, detailed, and easy to interpret. Below is a comprehensive guide to the different types of invoices you may receive, what they contain, and how to read them effectively.
Invoice Types and What They Mean
Identify the document’s purpose before reviewing its charges. Deposit Notes provide refundable security under applicable terms; payroll, service-fee and supplemental invoices cover different costs.
1. DN (Deposit Note)
Type: One-Time Charge
Purpose: A security deposit collected before onboarding to ensure financial responsibility for employment obligations.
Timing: Required before the employee receives their contract for signature.
Refundable: Yes — returned upon employment termination, assuming no unresolved claims or financial issues remain.
Why is a deposit needed?
This deposit serves as a safeguard, ensuring that Remote People can meet employee obligations even if a client becomes financially insolvent. It is not used for operational expenses and is held securely until the end of the employment term.
Can a deposit be issued as a standard invoice?
No. Our deposits are refundable security deposits, not payments for Remote People’s services. The deposit is held temporarily and refunded to the client after the employee is offboarded, subject to the applicable terms. As it does not represent payment for a service, it is not treated as a standard service invoice. Deposits are therefore issued as debit notes and cannot be provided in a different invoice format.
Read the full article on deposits here: When and why is a deposit required?
Payment due date: Deposit Notes are due within 5 days of issuance, which differs from the Net 10 terms applied to standard invoices. To avoid payroll delays, ensure the Deposit Note is paid at least one week before the employee’s start date.
2. SF (Service Fee Invoice)
Type: Monthly Recurring Invoice
Purpose: Covers recurring service-related costs per employee.
Applicable as long as employees and employee's payroll, social contributions, etc. are processed.Details Included:
List of employees
Monthly recurring service fee per employee
Monthly Benefits Administration fee (if selected)
Service Fee Breakdown
Monthly Service Fees: Covers payroll administration, client support, and other ongoing services.
Setup Fees: One-time fees for onboarding and alignment activities.
Ad-hoc Fees: Charges for services beyond the standard agreement, such as visa support or off-cycle payroll.
Important: Service Fee invoices are issued monthly, and cannot be prorated. This is because the administrative workload including contract localized drafting, benefits enrollment, and legal compliance is fully executed during the onboarding phase, regardless of the specific start date. We are required to process a full payroll cycle and statutory filings for the entire month to ensure total compliance from day one.
3. PR (Payroll Invoice)
Type: Monthly Recurring Invoice
Purpose: Summarizes employee payroll costs each month.
Details Included:
Payroll amounts by employee
Second-page breakdown includes:
Payroll
Employer Burden
Regularisation (if applicable)
Payroll Invoice Breakdown
Recurring Income: Fixed gross salary and contractual allowances.
Expenses: Approved business expenses submitted through the Remote People platform.
Non-recurring Income: Bonuses or commissions added before the cut-off date.
Employer Burden: Statutory contributions required by local law.
Financial Charges: Bank fees based on your signed Proposal.
Regularisation: Adjustments from the previous month's invoice.
Read the full article breaking down the payroll and service fee invoices here: What do the items on the Remote People Payroll and Service Fee Invoices mean?
4. SI (Supplemental Invoice)
Type: Mid-Month Adjustment Invoice
Issued On: 15th or 16th of each month
Purpose: Captures any changes or additions made after the initial 6th-of-the-month payroll invoice.
Why It Matters: Ensures payroll reflects the most current and complete data.
Read the full article on Supplemental Invoices here: What is a Supplemental Invoice, and how can I access its details?
Invoice Issuance and Payment Terms
Monthly Invoice Schedule
Regular invoices are typically issued on the 6th of each month. The issuance window spans the 1st to 10th of the month. Delays may occur if payroll audits uncover discrepancies, but salary payments are never withheld due to a delayed invoice.
Standard Payment Terms (Net 10)
Standard invoices — Payroll (PR), Service Fee (SF), and Supplemental (SI) — follow Net 10 payment terms, meaning they are due 10 calendar days after issuance. For example, an invoice issued on the 6th is due on the 16th. The due date is clearly indicated on the first page of each invoice.
Invoice due dates are not extended for public holidays in the payer’s country. Payments must still be made by the original due date.
First-Month Invoices
When a new employee joins, the first month typically includes three invoice components — all of which must be paid:
A Payroll Invoice (PR) — employee salary and employer burden
A Service Fee Invoice (SF) — recurring service and administration costs
A Deposit Note (DN) — refundable security deposit, due within 5 days. Pay at least one week before the employee’s start date to avoid onboarding delays.
In Summary
Remote People issues four main types of invoices:
Deposit Notes (one-time), Service Fees (monthly), Payroll (monthly), and Supplemental Invoices (mid-month adjustments).
Each is designed to provide a transparent view of charges, from employee salaries to service and compliance fees. For more details on any specific invoice type, refer to the linked articles above or reach out to our support team.
FAQs
Why can’t invoices be issued earlier?
Invoices follow a standardised schedule aligned with payroll processing cycles. Issuing them earlier could compromise accuracy and compliance.
What happens if a payroll audit delays my invoice?
Delays in issuing invoices do not affect salary payments. Employees will receive their salaries as scheduled regardless of any invoice processing delays.
Can supplemental invoices be aligned with my regular billing cycle?
Yes. Ensure all non-recurring items (bonuses, commissions, expense approvals) are submitted and approved before the 5th of the month. Items submitted after that date will appear on the supplemental invoice issued around the 15th or 16th.
Can invoice due dates be changed or consolidated?
No. Invoice due dates cannot be changed or consolidated. This ensures compliance with payroll cycles and statutory timelines.
How can I generate separate invoices for different employees?
Create a new Billing Group in the platform and assign the relevant employees to it. Each billing group generates its own invoice. Note that even within a single billing group, invoices may be split due to timing differences in payroll data processing — for example, new hires and offboarded employees are often invoiced separately.
Can deposits and payroll invoices be combined or offset against each other?
No. Deposit Notes and payroll invoices are separate and cannot be combined or offset. Payroll invoices must be paid in full in accordance with the billing policy, regardless of any outstanding deposit balance.