When you onboard a new employee, your first payment will be a security deposit. The security deposit is equal to one month’s expected payroll and taxes.
As an employer of record, we have a contractual obligation to pay the employee their salary; if we’re ever unable to draw funds from your account, we can use this deposit to ensure we pay the employee in a timely manner.
When will I get the deposit back?
We withdraw the deposit and hold it for the duration of the employee's employment with the company. Once the employee leaves (e.g., through resignation or termination), the security deposit will be refunded to you within 30 days of the employee's final payroll.