To summarize, our subscription model is based on pre-paying for a max number of active employees in a month. This payment is made at the beginning of the month to cover the service for the month, this is known as the "Subscription Period."
In the event that more employees were marked active than the max number of active employees paid for at the beginning of the month, then those additional employees will be charged for on the next invoice in the section labeled "Last Month's Added Employees." We pro-rate the additional charge based on when they became active in the month.
Concert Seat Analogy: Think about each employee marked as active as sitting in a seat at a concert. When you want to have more people join your group at the concert you purchase more seats for them to sit in. But if they join mid-concert then they shouldn't have to pay for the whole concert, so they just start paying when they arrived at the concert. In the event people leave the concert early (are marked inactive), well then you have available seats for new people to sit in. So we recommend to first mark employees as inactive if they are not using the system before adding new employees to minimize the max number of purchased seats.
This Month's Prepaid Subscription represents the pre-paid subscription amount based on the total number of employees marked as "Active" on your account at the beginning of your Subscription Period at the top. Here are the three line items explain:
Sync Service Monthly (Tier 1) - Base Account Fee: This is the base fee per account that covers the secure hosting of time reports in the event that you need to reference a past employees time reports. In the US it's federally mandated that employers hold records of their employees records for the last 3 years, whether they are employed or not. This fee ensures you have the records you need in case of an audit.
# of Employees x Sync Service Monthly (Tier 2) - Per Employee Fee: This is the investment associated with the Toolr services for employees 6+, and this is a separate line-item due to our Jumpstart Program, where if an account has only 5 or less active employees then the first 5 active employees are free.
Sync Service Monthly (Tier 2) - Per Employee Fee: This is the investment associated with the Toolr services for the first 5 employees. We break this out because of our Toolr Jumpstart program, where if an account has only 5 or less active employees then the first 5 active employees are free. Once going beyond the 5 employee thresh-hold then the first 5 employees are charged for in this line item, as pictured above.
Frequently Asked Questions:
Do you charge for every new employee I add?
No, our subscription is based on Max Number of Employees, not each employee added. This means if you first make 5 employees inactive, then add 5 employees, your net employee count hasn't changed, therefore your max employee count is unchanged. Please refer to the "Concert Seat Analogy" above for more context.
What happens if I first add employees then mark employees inactive, does the invoice change?
The quantity counter runs once every day, so if you add employees and then remove the same number of employees within the same business day, your net change will be zero so the max number of employees won't have changed, thus your next invoice won't have changed either. But if you first add 5 employees, then wait a couple days to mark 5 employees inactive, your max number of employees increased by 5 for a day so that sets the new max number of employees higher for the month by 5 employees. The account will incur a pro-rated charge for the additional 5 employees based on when they were added. Please refer to the "Concert Seat Analogy" above for more context.
What are the benefits of a yearly plan over a monthly plan?
The first obvious benefit is that you receive two months of service for free, equating to being just under 20% cheaper than if paying month to month each month for a year. The second benefit is the way that billing is handled when there is a change in active employees in the year. On a monthly plan, the max active employee quantity resets each month, but on a yearly plan where there isn't monthly billing, the quantity resets every day. As a result, you incur account credits toward newly active employees from previous employees marked in-active within the year. Overall, the yearly plan is a better annual ROI.