What is our invoicing process?
At Multiplier, to ensure a smooth payroll cycle we follow a 2-step invoicing process:
Funding Invoice (First Invoice):
The funding invoice pertaining to any given month is intended to collect money to fund the payroll of your respective employees (all employees that we know and expect to be active for that month). To that extent, the funding invoice will contain the gross salary of your employees, as well as the related management fees. The gross salary of your employee(s) can be validated via the Multiplier platform whereas the management fees can be validated using the MSA that was signed between you and Multiplier.
You will receive the funding invoices for a particular month before the start of (and no later than the first week of) the month to which the payroll pertains. For example, for the payroll of April 2023, the funding invoice will be issued by the end of March, but no later than the 7th of April 2023.
This funding invoice must be paid by the due date stated on the invoice so as to help facilitate salary payments to your respective employees. Any delays in settling the funding invoice will result in a delay in salary payments to your respective employees until such invoices have been settled in full.
If the overdue invoice(s) remains outstanding beyond 30 days from the due date, Multiplier reserves the right to commence the off-boarding process for the respective employees.
For any employees you onboard after we have sent you the funding invoice, Multiplier will, at its discretion, send you either a funding invoice for those employees or include the amounts and charges for these employees directly as part of the reconciliation invoice (see below).
Summary of funding invoice:
Employees’ Gross Salary (as input on the Multiplier platform)
Management Fees (as agreed in the MSA)
Payment Terms - As agreed in the MSA
Please note that the first invoice will not have any spreadsheet attachment, as this invoice only contains information (Gross salary) that is accessible directly via the platform. The detailed payroll cost breakdown for your team will be sent along with the reconciliation invoice.
Reconciliation Invoice (Second Invoice)
The reconciliation invoice is intended to be the final invoice for the month reflecting the difference between actual costs for your employees (based on the payroll runs executed by Multiplier) and the funding invoice. The differences between the funding and reconciliation invoice may include (but are not limited to) employer contribution, expenses, variable payouts (such as bonuses and commissions), FX rates, and/or any other charges which are to be paid to the employee. This invoice helps to reconcile the overall payroll cost of the employees at a country level.
Any amounts charged as part of the funding invoice will be deducted/adjusted from this invoice, thereby leaving the net differential amount that is payable to Multiplier. If there is a net payable to you, then a credit note will be issued, which will be offset with the immediate next invoice we send you.
You will receive the reconciliation invoices for a particular month from the third week onwards of the same month.
Please note that although we aim to send you as few invoices as possible, the reconciliation invoice may not be the final invoice that you receive for the month. This may be due to additional charges, newly onboarded employees, payroll adjustments, or off-cycle payroll runs that Multiplier may need to run on your behalf.
Summary of reconciliation invoice:
Total employees’ cost to the company, less amount charged for those employees as part of the funding invoice
Management fees not included in the funding invoice
Payment Terms - As agreed in the MSA
Spreadsheet - A detailed working/spreadsheet shall accompany the invoice, giving you a breakup of the total cost for each employee by component. This shall also contain the foreign exchange rate (see below for further details on FX) that has been used to convert the amounts from the employee’s respective currency to your billing currency. Additionally, detailed payroll reports for each employee will be available on the platform, which can be accessed at any time.
2. What foreign exchange (FX) rate does Multiplier use on its invoices?
On the funding invoice, we simply apply the FX rate that was used when issuing out the prior month’s reconciliation invoices. This, naturally, is not the final FX rate that will be used to convert your employees’ total costs from their respective currencies to your billing currency. This is because there is a significant time gap between the issuance of the funding invoice and when employees are actually paid, and Multiplier cannot forecast or lock in FX rates that much in advance.
The FX rate used on the reconciliation invoice is the final one that is applicable in deriving the amount payable by you to Multiplier for that month. To determine the rate to be used on the reconciliation invoice, we analyze historical rates over the past several months and quarters to forecast the level of volatility we should expect on a respective currency pair, and thereby determine the risk of adverse FX movements we carry between the time we invoice you and the time we release salaries to your employees.
In addition, we have to consider the costs of transferring money to the various jurisdictions where your employees are based, including but not limited to the buy-sell spread (paid to financial institutions), transfer fees, and statutory compliances. We also consider these, in addition to the relative volatility of a currency pair, when determining the FX rates to be used for invoicing.
The FX rate used on the platform is a prevailing rate (also known as the mid-market rate) and is provided to give you an estimation of what your employee cost might look like taking into consideration the currency your employee will be paid in. This is not the FX rate we will use on your invoice.
3. What is the spreadsheet attached to the invoice?
The spreadsheet attached and sent along with the reconciliation invoice gives you visibility into the breakdown of your employees’ total costs (in the employee’s respective currency) and how that has been converted into your billing currency.
4. How can I get further details relating to my employee’s payroll?
Further details relating to the payroll of an employee (that may not be available in the spreadsheet attached to the invoice) can be obtained from the payroll reports available on the Multiplier Ops platform
5. In which currencies can Multiplier issue invoices?
You can opt to be billed in any one of the following currencies: USD / GBP / EUR / AUD / SGD. Please bear in mind that we can only apply one billing currency to your account, so we will bill you all charges and amounts in your chosen currency.
Any change in billing currency will be applied to invoices pertaining to charges of the following month, if that change has been requested via the Multiplier Ops platform on or before the 10th of the current month. A change requested after the 10th will only apply to invoices pertaining to the month after next. For example, a change in billing currency requested on or before March 10th will be applied to invoices pertaining to payroll and charges for April and onwards. Any change in the billing currency requested between March 11th and April 10th will be applied to invoices pertaining to May and onwards.
You can update your billing currency via the “billing currency” tab on the Multiplier Ops platform.
6. What is a deposit invoice?
A deposit invoice is raised at the time of onboarding a new employee. The deposit is used as security to cover for the notice period of the employee in the event their employment is terminated. The deposit for an employee needs to be paid before we can proceed with signing the employment agreement and hence it is due upon receipt. Payment terms agreed between you and Multiplier are not applicable to deposit invoices. If a deposit invoice is not paid within 30 days of being issued, we will assume that you do not wish to proceed with employing that employee, and the deposit invoice along with the employee’s onboarding process will be canceled.
7. When and how is the deposit refunded by Multiplier?
We will refund to you any deposit amounts we hold for an off-boarded employee once the full & final (F&F) settlement for that employee is processed. The F&F is generally processed within 30 days from the last working day (LWD) of the employee, and the deposit is refunded within the next 15 days of the F&F.
The deposit will be refunded by issuing a credit note in your favor and shall first be applied against any receivables owed by you to Multiplier. Any surplus refunds remaining will be settled via a bank transfer to your account.
8. What happens if my employee is off-boarded after the funding invoice has been issued?
If the off-boarding process for any employee(s) is initiated after the funding invoice has been issued out to you, you must still settle the funding invoice in full. The reconciliation invoice will reflect any adjustments, if applicable, that arise as a result of one or more of your employees being off-boarded. Rest assured, any amounts owed to you will be credited/refunded back to you.
9. How can I reach out to Multiplier if I have questions or need more help?
Please reach out to your dedicated customer success manager (CSM) for any further questions or clarifications. For invoicing-related queries, please reach out to us at firstname.lastname@example.org