At Remote People, we follow a structured payroll cut-off date to ensure timely expense reimbursements for employees. To provide clarity, we have outlined the key details regarding reimbursement timelines below.
What is the cut-off date for expense reimbursements?
For most employees (excluding those in China & Taiwan), any expense claim approved by the 15th of the month at 6:00 PM PST will be reimbursed within the same month's payroll cycle. Claims approved after the 15th will be processed in the following month's payroll. Additionally, reimbursements are typically paid on the last working day of the month.
For employees in Taiwan, the January payroll is scheduled for January 24.
What happens if the 15th falls on a weekend?
If the 15th falls on a weekend, the cut-off date will be the preceding Friday at 6:00 PM PST.
December Cut-Off Exception
In December, the cut-off date is earlier, typically on December 5th, to accommodate the holiday season. Expenses approved after this date are processed in the January payroll cycle. This adjustment ensures payroll processing is completed on time, as changes cannot be made once a payroll cycle is closed.
Additionally, timesheets for December holiday or night-shift hours uploaded after the December payroll cutoff are processed in the next payroll cycle (e.g., January hours reflected in February payroll).
When will the reimbursement be paid?
Expense reimbursements are typically processed as a separate remittance after salary payments. This may result in the reimbursement being paid a couple of days later than the salary payout. Reimbursements are typically paid on the last working day of the month.
Additionally, salaries are credited to employees' accounts on the last working day of each month, but the exact time funds appear may vary due to bank processing timelines and other external factors.
Expenses that are not approved by the payroll cut-off date will not be included in the current payroll cycle. These will be processed in the next cycle once they are approved.
Why hasn’t my expense reimbursement been received even though salary was paid?
If an expense was submitted after the cut-off date (e.g., the 10th of the month), it will not be included in that month’s payroll. It will be processed in the next payroll cycle.
How does this affect invoicing for clients?
Remote People will continue to send the primary monthly invoice by the 8th of each month. Any payroll changes, including bonuses, commissions, and expenses submitted and approved between the 8th and 15th, will be reflected in a secondary invoice sent after the 15th. The payment terms for this secondary invoice will remain as per your contractual agreement.
What happens if I have an urgent payroll change after the 15th?
Any payroll changes submitted after the 15th cut-off will be treated as an off-cycle request, which may be subject to additional fees. Remote People will review the feasibility of processing the off-cycle request for same-month payout on a case-by-case basis. If it is not feasible, the submission will be processed in the following month.
Can expense payments be canceled or suspended?
Expense payments can be canceled, but payroll must be informed before the monthly cut-off on the 15th. Requests made after the cut-off may not be applied to that month’s payroll.
General Guidelines for Employees
Country-Specific Payroll Details
Indonesia: Salaries are transferred on the last working day of the month but may be processed in batches due to local banking limitations.
Cyprus: December payroll, including the Christmas period, is paid on the last working day of December.
Spain: December payroll is scheduled for December 31, after Christmas.
Nigeria: December payroll is processed on December 30.
Taiwan: January payroll is scheduled for January 24.
Submit expense reimbursement requests promptly to ensure timely approval and processing.
Monitor the status of your expense approvals, especially around payroll cut-off dates, to understand when they will be included in payroll.
Contact Support for specific cut-off dates and additional guidance.
Be aware of December cut-off exceptions and country-specific rules to avoid delays in reimbursement.
Example Scenarios
Example 1:
Jane submits an expense claim, and it is approved on May 3rd. Since her submission was approved before the 15th, she will be reimbursed with her May payroll.
Example 2:
Mark files an expense claim, and it is approved on June 17th. Since this is after the 15th cut-off, he will receive his reimbursement with his July payroll.