Remote People issues three invoices each month:
Payroll invoices (labeled "PR"),
Service Fees invoices (labeled "SF"),
and Supplemental invoices (labeled "SI").
Note: In months when new candidates join your team, an additional debit note for the employment deposit is issued. If an employee offboarded in the previous month, you will receive a credit note as a refund for the employment deposit.
Payroll Invoice Breakdown
Your payroll invoice may include the following elements:
Recurring Income: This is the total fixed gross income employees receive monthly, including the gross salary and any additional remuneration like allowances. These amounts are specified in the employee's contract and don't require monthly confirmation. If an employee did not work the full month, the gross salary is prorated accordingly. For example, if the monthly salary is 10,000 CNY and the employee worked 13 out of 21.75 working days, the prorated salary is: 10,000 × (13 ÷ 21.75) = 5,977.01 CNY.
Expenses: These are business expenses submitted and approved through the Remote People platform. More details can be found under "Expenses" in your Remote People dashboard. Expenses are treated as part of payroll and cannot be invoiced separately. Separate expense invoices or routing to different recipients are not supported — all invoices are delivered to the designated Finance Contact on file.
Important: Payment of an expense reimbursement does not trigger salary release. Payroll release depends solely on the Payroll (PR) invoice. Ensure the PR invoice is paid by its due date to avoid any salary delays.
Non-recurring Income: This includes one-time payments such as bonuses and commissions. Clients need to add these amounts to the Remote People platform before the monthly cut-off date.
Employer Burden: This covers mandatory employer social security contributions and any additional insurances required by local laws. It represents the statutory employment costs in the respective country. Please note that the Employer Burden on the current period's invoice will reference the prior period numbers.
Financial Charges: Monthly bank charges, if applicable, are listed as "International Wiring Fee" in the signed Proposal. For employees in China, a 6% VAT is also applied to payroll amounts, including salaries, expense reimbursements, and employer contributions. This may appear on subsequent invoices due to billing in arrears, in line with local tax compliance requirements.
Payroll Adjustments and Regularizations
Adjustments ensure payroll accuracy and compliance. The following types of adjustments may appear on your invoice:
Regularizations: These reconcile differences between estimated and actual payroll amounts. For instance, if statutory contributions such as CPP or EI differ from initial estimates, the adjustment is reflected in the following invoice.
Sick Leave Adjustments: If an employee’s sick leave is extended after payroll processing, corrections are applied in the next payroll cycle.
Currency Exchange Variances: Invoices may show discrepancies due to exchange rate movements between the time payroll is estimated and when it is finalised. These are reconciled through regularizations in subsequent invoices.
Supplemental Invoices and Late Changes
Late approvals or changes may result in a Supplemental Invoice (SI). The following cut-off rules apply:
Variable Pay Cut-Offs: Approvals submitted before the 5th of the month are included in the main Payroll (PR) and Service Fee (SF) invoices. Approvals submitted after the 5th but before the 15th generate a supplemental invoice instead.
Late-Approved Expenses: Expenses approved after the initial cut-off are included in a supplemental invoice to ensure timely employee payments.
For more information, refer to What is a Supplemental Invoice, and how can I access its details?
Invoice Policy: Combining and Offsetting
The following rules govern how invoice types can be used or combined:
Expense adjustments cannot be invoiced separately or offset against payroll invoices. Approved expenses are always included in the Payroll (PR) or Supplemental (SI) invoice depending on when they were approved.
Deposits and payroll invoices cannot be combined or offset against each other. Payroll invoices must always be paid in full in accordance with the billing policy, regardless of any deposit balance.
Currency Exchange and Conversion
Salaries are invoiced in the employee’s local currency using official exchange rates applicable at the time of invoicing. Any discrepancies arising from exchange rate movements are reconciled through regularizations in subsequent invoices.
Gross-Up Calculations for Expenses
In certain countries (such as Mexico), approved net expenses are grossed up to ensure the employee receives the correct net amount after applicable taxes and contributions are deducted. For example:
Approved net expense: MXN 22,833.60
Grossed-up amount on invoice: MXN 28,793.98
This ensures compliance with local tax regulations while guaranteeing the employee’s take-home amount remains unaffected.
Service Fee Invoice Breakdown
Remote People issues a second invoice each month for service fees, which are the agreed-upon monthly fees for our services. These fees are outlined in the signed Proposal and have been previously agreed upon between your company and our Sales department. Here is an overview of the expected fees:
Monthly Service Fees: This is the recurring monthly management fee, covering payroll processing, expense report processing, ad-hoc support, and other services.
Setup Fees: Typically charged in the first month of employment, this fee covers onboarding activities such as contract drafting, review, signing, support during onboarding, and alignment calls.
Ad-hoc Fees: If applicable, this fee covers additional services outside the standard scope, such as out-of-cycle payroll requests or visa/immigration support for candidates requiring visas. Typically, the Out-of-Cycle (OOC) fee is equivalent to one month of the service fee per employee and is billed per employee who has an OOC item processed. These fees are usually included in the subsequent invoice to streamline the billing process.
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.
FAQs
Why do my monthly charges vary?
Monthly charges may vary due to changes in employer burden calculations or payroll cycles. For example, in countries with bi-weekly payroll (such as the US and Canada), some months contain three pay periods, which increases the invoice amount for that month.
What does a final payroll invoice include?
Final invoices may include expense reimbursements and adjustments for prior periods. A detailed breakdown can be viewed in the Reports section of the Remote People platform.
Why are CPP and EI charges appearing on my invoice?
CPP (Canada Pension Plan) and EI (Employment Insurance) are mandatory employer payroll taxes in Canada. They are charged monthly until the employee reaches the annual statutory cap and appear under Employer Burden on your Payroll Invoice.
Can expenses be routed to different recipients?
No. Invoices are sent to the designated Finance Contact on file, and routing cannot be customised per invoice. All invoice types — including those containing expense items — are delivered to the same designated recipient.
When are supplemental invoices issued?
Supplemental invoices are issued around the 15th or 16th of the month. They capture non-recurring items — such as bonuses, commissions, and expense approvals — submitted after the 5th but before the 15th of the month.