Payout methods

Payout methods are esential feature in OnSinch for processing payouts for earned wages and reimbursements. Find out in this article how to set them up.

Every contract under which staff member works on a shift needs to be associated with active payout method in order to process the payout and balance staff members' wallets. Payout method is also needed for processing reimbursement payments.

Creating payout method

• We recommend naming the title of payout method clearly ideally with reference to contract which it will be associated with. Therefore it is clear both to admins and also to staff members as they will see the payout method title in their wallets. (e.g. Freelance payout). Each contract needs to have its own payout method.
• Calculation method  - choose how the method should calculate the processed payout. 
  • Doing business in Czech Republic ? You can choose from list of available calculation methods (e.g. DPP, DPČ) that will deduct from gross wage automatically social security, health insurance and tax according to current Czech legislative. There is also option to create separate payout method for staff who signed pink document related to tax payer declaration (choose ''růžovka'' in settings field). Read more about Czech contract specifics in this article.
  • Doing business in other countries than Czech Republic ? OnSinch do not support country specific payout employment calculations. You can choose between:
    • generic calculation - nothing is deducted and wage remains the same, brutto is netto. For employment-type contracts you can export csv file or use API endpoints of payouts to calculate salary deductions and netto wage.
    • generic % calculation - you can set your own % deduction or surcharge that should be deducted from the total salary when processing the payout. In this example, we are deducting 25% from all earnings under this payout method.

• Validity - you can set time frame for each payout method. This validity is not connected to validity of contract. Leave fields blank to set method as indefinite.
• Needed contract - this is the part where you connect payout method with contract (e.g. link Freelance payout with Freelance contract). Thanks to this feature you will be able to payout your staff wages they earned by working on a shift under this contract. 
• Payout method can have set maximum limits for total earned wage or total hours worked for certain period. Period can be set to week, month or year.

• You can require to upload a document when requesting payout - check this if you want staff members to send you e.g invoice via OnSinch. You will receive it in notification email.
• Payout method can be set available also for payout of reimbursement.

Once the payout method has been used at least once for payout it cannot be deleted, only deactivated.

Reimbursement payout method

Since reimbursement is also payment related to staff members there has to be payout method for it as well.

When adding payout method just choose Reimbursement calculation in calculation method field.

There is also an option to use other payout methods not only for wages but also for reimbursement (see above). However, we recommend having a separate payout method just for reimbursement especially when dealing with employees with 0-hour contract.

Reimbursement calculation method does not need to be associated with any contract as it is not related to the work itself.