Billing

How do prorated charges work?

In the event of changes to the number of employees during a monthly or annual billing cycle, your upcoming invoice will be updated accordingly. Newly added users will be billed, while credits will be issued for removed users.

Prorated charges calculation

Take a look at this example:

Muster LLC has 12 employees on the Premium plan. For the first billing cycle, they are charged 12 * $10, which totals $120 (USD).

Midway through the billing cycle, Muster LLC added 2 more employees, and 2 days remaining before the next billing date.

Muster LLC next monthly invoice will reflect the following charges:

• A total of 14 employees (initially starting with 12, they added 2 more, bringing the total to 14 employees by the end of the current billing cycle, which will apply to the next billing cycle). 14 * $10 = $140 (USD)

• Muster LLC removed 4 users before next billing date (initially starting with 12, they added 2 more and now they removed 4 employees by the end of the current billing cycle, which will apply to the next billing cycle).

10 * $10 = $100 (Actual amount after 4 employees removed)

So, the final amount on the invoice of Muster LLC for their next billing cycle is: $140 - $40 = $100 (Actual amount for current invoice) and the next billing amount shall be $100 - $40 = $60 (USD)

Note: The credit for deleted employees will be adjusted in the next billing cycle. In the above example, they removed 4 employees, which costs $40, and after this the next billing amount shall be $60 as explained above.