It is completely normal to see fluctuations in employee deduction amounts from month to month. These changes reflect the flexibility your employees enjoy to modify and manage their subscriptions.
Common reasons for changes:
Plan Upgrades: If an employee transitions to a higher-tier plan, the system charges them the new plan's cost minus the unused days of their previous plan. You will see the adjusted deduction amount on the deduction file for the current payroll billing cycle.
Plan Downgrades: If an employee chooses a lower-tier plan, the change takes effect in their next subscription billing cycle. The deduction file for the subsequent payroll cycle will reflect the updated plan tier and new price.
Plan Pauses: When an employee pauses a monthly subscription, the system adds the paused days to the end of their current billing cycle. This postpones their next renewal date, which can shift the deduction to a future month's file.
Let's look at an example:
- Company payroll billing day: 1st April
- Company payroll cutoff date: 27th March
- Employee's renewal date: 15th March
What happens when the employee pauses the plan?
- Action: On 14th March, the employee pauses their plan for 20 days.
- Effect on the Plan: The system adds these 20 days to the subscription period, postponing the next renewal date from 15th March to 3rd April.
- Payroll Impact: Because the new renewal date (3rd April) falls outside the March cutoff period, the system processes the deduction in the following payroll billing cycle, elegantly bypassing the March file (generated on 1st April).