What are the different amounts on the invoice?
This article will help you get familiar with the various elements of the monthly invoices. Each month, Horizons issues two* invoices to our clients: payroll invoices ("PR" are first two letters of invoice name) and service fees invoice ("SF" are first two letters of invoice name).
*In months where new candidates join your team, we issue an additional debit note for the employment deposit. Should an employee have offboarded in the previous month, you have a credit note, which is a refund of the employment deposit.
In the payroll invoice, you may encounter the following payroll elements. Some elements, e.g., recurring income and employer burden will be charged each month the employee is in active employment, while other amounts, e.g., regularisation, expenses, may not be included each month.
- Recurring Income: total fixed gross income which the employee receives each month. This consists of the employee's gross monthly salary and any contractually agreed additional remuneration, e.g., working from home allowance, car allowance, etc. These amounts are taken directly from the employee's signed employment contract and do not need to be confirmed each month.
- Non-recurring Income: includes additional ad-hoc income, e.g., bonuses, commissions, etc., which is considered a once-off payment. This input needs to be added to our Horizons platform by our clients before the cut-off date each month.
- Employer Burden: the total mandatory employer social security contributions and any additional mandatory insurances per local legislation and practice. These are the statutory costs of employing your employees in the respective country.
- Financial Charges: these are the monthly bank charges and if charged, can be found on the first page of the signed Proposal under the name "International Wiring Fee".
- Regularisation: the difference (+/-) in the invoiced amounts from the previous month (M-1) to the current month (M). Further information can be found in the article at the bottom of this page.
Example 1: Johan
Example 2: Nathaniel
Example 3: Yulia:
Service Fees Invoice:
The second invoice includes the service fees which are the monthly fees agreed to in return of Horizons' services. All amounts in this invoice can be found in the signed Proposal and have previously been agreed upon between your company and our Sales department. Below is an overview of the fees which you can expect to find:
- Monthly Service Fees: the recurring monthly management fee. This covers payroll processing, processing of business expense reports, ad-hoc support/service, etc.
- Setup Fees: often charged in the first month of employment. This fee covers the time invested in onboarding the employee, e.g., contract drafting, review and signature, support during onboarding, alignment calls, etc.
- Ad-hoc Fees: This fee, if charged, covers a specific additional service which falls outside of the standard scope of Horizons' services. While the exact nature of this fee cannot be interpreted from the invoice, it is generally related to an out of cycle payroll request (e.g., accommodating changes to the payroll outside of the standard process) or a visa/immigration fee for a candidate requiring visa support.
Example 1: Elena
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