Introduction, Scope, and Benefits
Contents
Deel is a global payroll software that helps manage time and attendance, compliance, payroll, and invoicing through a single system. In our context, we will be using it only to manage payroll and related tasks for folks engaged with rtCamp Inc. as Independent Contractors.
The HR Team performs a set of tasks that are manual and prone to errors, some of those are:
- US tax compliance forms to avail tax withholding, availing DTAA, etc.
Inaccurate and incomplete forms can lead to penalties, especially as these rules change frequently. - Calculating monthly payroll in a spreadsheet manually
- Raising invoices and moving them to document vaults and accounting software
- Manually processing payables through the bank accounts
Deel will help us automate/organize the above and avoid any imminent errors, helping them improve overall efficiency and productivity.
Getting Started
The first step is to initiate a new contract including all stakeholders i.e. the contractor, rtCamp, and Deel. In the contract, Deel will be the authorized Payment Partner/Payer on Record. This change will not affect the contractor’s continuity, add/delete any new terms from the contract, or anything apart from the introduction of Deel. The contract will only be signed by the rtCamper and the contractor, as Deel has signed a top-level agreement with rtCamp and won’t be a party to this contract.
The new contract will be sent to the contractor’s personal email ID first and then shared with the HR Team for signatures. It is suggested that the contractor use their personal email ID to sign up on the platform to ensure continued access to their records even in the future.
As soon the contractor logs in to the platform, they will see some onboarding tasks awaiting their action such as:
- Verify your identity
- Update compliance documents
- Setup withdrawal methods
The contractor’s compliance documents and identification documents will be reviewed by a third-party verification agency, and the HR Team won’t be able to intervene in case of any discrepancies. Contractors should ensure the withdrawal method set up is double-checked because unlike before, the HR Team won’t have visibility about the contractor’s withdrawal methods after the funds have been sent.
Payroll cycle and pay dates
For rtCamp Inc. contractors, the payroll cycle will now be from the first date until the last date of the month i.e. any time offs, additions/deletions, etc. will be accounted for in the same month.
The invoices will be processed on the 5th day of the subsequent month. This time will be used to verify time records, attendance, benefits, and any other attributes that have an impact on payroll. After the contractor has realized their funds in their personal Deel Account, they can then initiate a withdrawal through their preferred payment method. This can take another couple of business days considering banking hours and schedules.
To be on the safe side, contractors can schedule any automatic payments, auto EMI, deductions from their personal bank accounts, after the 10th of each month.
All invoice payments made to the contractor’s Deel Account should be withdrawn within 30 days of receiving the funds. Failure to do so will automatically send the funds back to rtCamp and may lead to:
- Additional charges for transfer, that will be passed on to the contractor.
- A delay in payment as we will club repayments with our next payroll cycle.
Attendance and Time Off
Contractors already add their time to platforms such as EverHour and ERP. To prevent any inconvenience, contractors do not need to mark time off in Deel. All update of records will be done by the HR Team after the end of the payroll cycle, and payroll will then be processed.
Monthly invoicing
With Deel, the payable amounts updated by the HR Team will automatically be used to generate the invoices. Contractors will no longer need to raise manual invoices, however, they can log in to the system by 3rd of every month to verify the pay records updated by the HR Team.
Exits
In case of termination of a contract (exit/separation), the funds received in the contractor’s Deel account will be safe and will continue to remain accessible to them, which is why we insisted that all contractors use their personal email ID to sign up.
The contractor’s Deel Account will remain accessible to them forever, wherein they can perform actions such as downloading invoices, withdrawing pending funds, etc.
Please note: The 30 days period for withdrawal of funds will still remain in force. Any funds not withdrawn within 30 days will be sent back to rtCamp.
Accepting payments as a company
If the contractor has formed and registered a company (partnership, LLC, C-corp, etc.) in compliance with their local laws, they can complete the associated identification verification and compliance documents in Deel and process withdrawals.
Platform and withdrawal fees
Deel has a platform fee for companies using their platform to manage payroll. This fee is, however, covered by rtCamp and none of the costs are passed on to the contractor.
After contractors receive payment for their Deel Accounts, withdrawing those funds could have some charges levied by intermediaries or banks. For detailed information, please refer to Deel Withdrawal Fee schedule.
These fees change from time to time, and it is advised that the contractor evaluates the available options to choose the best option. None of the benefits of these charges are received by rtCamp. Deel also displays the estimated fee to a contractor, rtCamp will be unable to suggest, compensate or reverse any transactions done at the contractor’s end.
Benefits such as Deel Advance, Deel Card, Perks, Insurance, etc.
Deel provides some add-on services to its users as listed in the title. All these benefits are elective and may include a cost to the contractor for the benefits. In case the contractor avails of any of the electives, please note that this agreement will remain between the contractor and Deel. rtCamp will not be able to intervene in case of non-performance or any other discrepancies.
Help Documentation
If case of any platform-specific questions, please check the Deel Documentation first to see if it has already been answered – https://help.letsdeel.com/hc/en-gb/categories/4409044011409-For-contractors.
If one prefers watching videos over text, they can check out their YouTube Channel – https://www.youtube.com/@getdeel