It is normal to see employee deduction amounts fluctuate from month to month. These changes reflect the flexibility your employees have to change and manage their subscription.
Common reasons for changes:
Plan Upgrades: When an employee moves to a higher-tier plan, they are charged the cost of the new plan minus the unused days of their previous plan. The adjusted deduction amount will be reflected on the deduction file for the current payroll billing cycle.
Plan Downgrades: When an employee moves to a lower-tier plan, the change will take place in their next subscription billing cycle. The updated plan tier and new price will be reflected in the next payroll billing cycle’s deduction file.
Plan Pauses: When an employee pauses a monthly subscription, the paused days are added to the end of their current subscription billing cycle. This pushes their next subscription renewal date forward, which can change which month's deduction file they land on.
Take a look at this example:
- Company Payroll billing day: April 1st
- Company Payroll cutoff date: March 27th
- Employee's renewal date: March 15
What happens when the plan is paused?
- Action: On March 14, the employee pauses their plan for 20 days.
- Effect on the Plan: These 20 days are added to their subscription period, postponing the next renewal date from March 15 to April 3.
- Payroll Impact: The employee will not appear in the March payroll deduction file (generated on April 1). This is because the new renewal date (April 3) falls outside the March cutoff period, so the deduction will be processed in the following payroll billing cycle.