Glossary of Outstaffer Billing Terms

Subscription Invoice: your monthly invoice issued on the 10th covering the next month's fixed subscriptions.

Debit Invoice: a separate invoice issued for under-billed amounts from the prior month's reconciliation. Issue-dated the last day of the prior month.

Credit Note: a refund applied to the original prior-month subscription invoice when actual payroll came in lower than billed.

Payroll Reconciliation Report: the monthly report explaining, line by line and employee by employee, the difference between billed and actual.

Night Differential: statutory extra pay for hours worked inside a country's night window. Where a country sets a statutory rate, the Philippines and Vietnam, and the employee works fixed hours, it is calculated from their work schedule, billed in advance on the subscription invoice as its own line, and reconciled against actual payroll. Anything not payable is credited back. For employees on flexible, rotating or variable hours it settles in the reconciliation instead.

Health Insurance Reconciliation: a reconciliation that runs when the insurer issues a new policy, comparing the standard rate billed during onboarding to the actual premium for the employee's age band. Any difference is captured as a debit note and the subscription is updated to the actual rate.

Locked FX Rate: the exchange rate fixed at the start of an employee's engagement, used for all subscription billing.

FX Rate Used for Reconciliation: the actual exchange rate at the time of payroll execution, used to convert local payroll back into your billing currency for the reconciliation.

Pro-rata Invoice: invoice for a new hire's first partial month, issued on the day they start.

New Hire Invoice: invoice for the security deposit, due on receipt, before the employment agreement is entered into.

Security Deposit: one-off charge equal to Employment Costs plus Plan Charges times 1.5 months, refundable per your Terms of Service.

Plan Charges: recurring charges for the EOR plan, Health Insurance, Equipment, and any add-ons such as Insightful.

Cross-Border Fee: a charge covering the cost of international transfer pricing for cross-border payments.

Local Government Tax: country-specific taxes that Outstaffer incurs and recovers at cost, for example Thailand 7% VAT and Philippines 1% local government tax on revenue.

Approval Workflow: Outstaffer's process for authorising discretionary payments, being bonuses, commissions, overtime and financial assistance, before they are paid.

Pass-Through: the principle that payroll is billed at the actual cost incurred, being what was paid to the employee, statutory authorities, and tax and compliance recipients.