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Employer of record deposit: reconcile the money before expecting a refund
An employer of record deposit is a funding item to examine separately from the recurring service fee and payroll payment. A quoted deposit, a paid deposit, a proposed refund and money received in your bank account are different records. This guide helps finance and people operations ask for the relevant evidence. It does not determine accounting treatment, interpret your contract or promise a refund.
Separate the employer of record deposit from other funding items
Ask the provider what each line in the quote funds and which agreement governs it. A refundable balance, an advance applied to a payroll invoice and a service fee can all require an upfront payment. The fact that cash leaves your account does not make them the same cost or give them the same release conditions.
For planning, give the deposit its own row alongside the fee and payroll funding. Record when the cash is needed and what could change the requirement. Have your finance team determine the appropriate accounting treatment from the actual agreement and applicable rules; this worksheet supplies an operational record, not a ledger classification.
| Item to clarify | Question for the provider | Evidence to retain |
|---|---|---|
| Deposit or reserve | What exposure does it cover, and when can it be applied or returned? | Agreement clause, requirement calculation and payment confirmation |
| Payroll advance or prefunding | Which invoice or payroll cycle will use these funds? | Invoice, period and allocation record |
| Service fee | What service period is charged, and can the fee continue during exit? | Fee schedule and cancellation terms |
| Refund or account credit | Is this an amount available for future invoices or a transfer to our bank? | Credit entry or transfer reference and actual receipt |
Read named provider policies without turning them into a universal rule
Deel’s public EOR refund article, marked updated 15 May 2025, ties processing to finalized termination or resignation, paid invoices and settled payment. It says applicable amounts can reduce the deposit and describes a bank refund or funds left on Deel. Its stated 60-day window starts after completion and paid invoices, not merely when an exit request is submitted. Confirm the applicable terms and clock for your own case.
Remote’s reserve explanation, marked updated 6 July 2026, describes protection against potential severance exposure and says the requirement can depend on account and employment terms. Its refund article, marked updated 3 July 2026, says unused reserves are credited or refunded after the relevant exit or incomplete onboarding when no payments remain outstanding. It does not state a universal payout deadline. A remaining balance and a bank payout should therefore be tracked separately.
These are public product explanations checked on 11 October 2026. They are not a review of a signed customer agreement. Do not use one provider’s label, trigger or timeline to fill another provider’s missing answer.
| Provider evidence | What to verify for your case | Public source |
|---|---|---|
| Deel EOR deposit refunds | Completion, invoice settlement, deductions, refund method and currency | Official source |
| Remote reserve payment | Requirement, relevant agreement terms and possible increases | Official source |
| Remote unused reserve refund | Outstanding payments, credit versus refund and proposed payout date | Official source |
Sources for this section: help.letsdeel.com · support.remote.com · support.remote.com
Build a deposit record before the first payment
Give every balance a provider, employing entity, work country, secure case reference and currency. Record the requested amount, the quote date, the amount actually paid and its payment reference. Ask whether later salary or contract changes can require an additional amount. A quote is not proof that the funds reached the provider.
Keep references to the evidence rather than putting bank details or sensitive worker information in a shared worksheet. If several deposits are pooled, ask how the provider allocates them and how a refund for one case affects the rest. Do not assume one employee’s balance can settle another employee’s obligations.
| Record | Minimum entry | Status to use until evidence exists |
|---|---|---|
| Requirement | Amount, currency, calculation and governing clause | To confirm |
| Funding | Paid amount, date, reference and provider acknowledgement | Payment evidence pending |
| Adjustment | Itemized reason, invoice or clause, reviewer and disputed amount | Review pending |
| Release | Proposed balance, trigger, method and currency | Provider confirmation pending |
| Receipt | Bank receipt or account-credit entry with reconciliation reference | Not received / not reconciled |
Download the blank EOR deposit reconciliation worksheet (CSV)
Illustrative reconciliation: keep disputed deductions open
This is an editorial arithmetic example, not a provider quote, customer case or accounting entry. Assume a USD 5,000 deposit. The provider proposes USD 1,200 of deductions. Finance has matched USD 900 to itemized evidence, while USD 300 is still disputed. The proposed remainder is USD 3,800. None of these entries proves what the provider is entitled to deduct.
Record the proposed USD 3,800 separately from the USD 300 open question. Ask for the missing support and a revised statement if appropriate. Do not mark the entire deduction approved, add the disputed amount to an expected payout as if agreed, or mark either amount received. When a payment or credit arrives, reconcile that actual entry against the final agreed statement.
Keep the original statement and subsequent versions with dates. If the provider changes the amount or currency, retain the explanation. That makes it possible to see whether the difference came from a revised deduction, exchange conversion, a bank charge or an error.
| Example entry | USD | Meaning |
|---|---|---|
| Original deposit | 5,000 | Assumed paid amount in this example |
| Proposed deductions | 1,200 | Includes 300 still under review |
| Evidence matched | 900 | Matched for review; not a legal approval |
| Proposed remainder | 3,800 | 5,000 minus 1,200; not money received |
| Actual receipt | Not recorded | Await bank or account-credit evidence |
Track the refund through separate checkpoints
Start with the trigger: has the provider confirmed which exit or onboarding condition applies? Then check the open items: are final invoices, settlement or other balances unresolved? Ask for the itemized release calculation and the expected next action. A support message saying “refund requested” answers a different question from a transfer reference.
Record the selected method. A provider account credit may be available for future invoices while no cash has reached your bank. Check refund currency, conversion basis and any charges before assuming the deposit currency will be the receipt currency. Use the provider’s secure workflow for bank information; this page does not collect it.
If the expected date passes, send the case reference, documented trigger date, outstanding questions and the last agreed next step through the official support channel. Ask for a revised date and reason. Escalate disputed interpretation to the appropriate reviewer rather than declaring a contractual breach from a generic web article.
Questions to send to the provider before funding or release
Ask which contract clause governs the deposit, how the amount is calculated and what changes can increase it. Ask what funds can be applied against it and what itemized evidence will accompany each deduction. Confirm whether the balance belongs to one case or is pooled across an account.
For release, ask which conditions must be completed, which payments remain outstanding, and what event starts any stated window. Confirm whether you will receive account credit or a bank transfer, the currency and conversion basis, and the contact responsible for reconciling the final amount. Keep unanswered questions marked “to confirm.”
Questions before deciding
Is an EOR security deposit part of the monthly service fee?
Do not combine them without an explanation. Request separate quote lines and the rules for each item. The worksheet treats them separately for planning; your finance team must determine accounting treatment.
Will every EOR return the full deposit?
This page makes no such promise. Named public policies allow applicable amounts or outstanding payments to affect the remaining balance. Obtain the signed terms and an itemized calculation for your actual case.
Does the refund clock start on the employee’s last working day?
Confirm the governing trigger. A last working day, completed offboarding, invoice settlement and refund processing date can differ. The named policies do not establish a universal last-day rule.
Is a provider account credit the same as a bank refund?
No. Track the credit entry and the cash receipt separately. Ask whether and how a credit can be used or withdrawn before treating it as available bank funds.
Can the deposit requirement increase after onboarding?
Ask your provider which changes affect it. Remote’s published reserve explanation identifies certain employment terms and account circumstances as possible factors. That does not establish another provider’s calculation or your account’s requirement.
What should I do if I disagree with a deduction?
Record the disputed amount, ask for its contractual basis and itemized support, and keep the approval status open. Preserve dated statements and have the relevant finance or legal reviewer address the actual dispute.
Your next step
Use the employer of record deposit worksheet to identify one missing fact before funding or expecting a refund. For an overall budget use the cost guide; for an employee exit use the termination guide. A completed worksheet records the answers you have, not a promise that the balance will be returned.
Official-source ledger
Each link below shows when its public source was checked. A page edit does not change the date of the provider’s terms. This is AI-assisted source research, with no production service testing, provider rating or professional legal sign-off claimed. Confirm current product and country terms before buying.