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New Policy Announcement: Pre-Funding for Large Bonuses

Prefunding required for bonuses above £10,000

Flora avatar
Written by Flora
Updated over a week ago

To ensure smooth payroll operations and compliance with financial regulations, Omnipresent is introducing a new policy for large bonus payments.

Thresholds & Deadlines for Pre-Funding

Effective February 2025, any bonus payments exceeding the following thresholds will require prefunding before processing:

  • £10,000 equivalent per employee per payroll cycle

  • £30,000 equivalent per company per payroll cycle

Large Bonus Submission Deadline

Payroll Cut-off Date

Manual Invoice Created Before

Payment Deadline

30th of the previous month

6th

3rd

6th

8th

15th

7th

14th

Why Is Pre-Funding Required?

Pre-funding ensures that we can process large bonus payments seamlessly and without delays while maintaining compliance with financial and operational requirements. Large transactions often require additional scrutiny from banks and regulatory bodies, and pre-funding helps us mitigate risks and ensure timely payments to your employees.

Key reasons for implementing this policy include:

  1. Compliance with Financial Regulations: High-value transactions are subject to stricter oversight. Pre-funding ensures that we meet regulatory requirements while maintaining the integrity of our payroll system.

  2. Risk Mitigation: By securing funds in advance, we can reduce the risk of payment delays or issues arising from unexpected banking restrictions or processing constraints.

  3. Error Prevention: In the event where an error was made in the bonus submission process, a pre-funding flow acts as a stopgap to make sure that the incorrect amount is not paid out to the employee.


How Pre-Funding Works

⬇️ Submission

The deadline for submitting these bonuses is:

30th of the previous month for employees with a 6th cut-off date

8th of the month for employees with a 15th cut-off date

💡Notification

If your bonuses exceed the stated thresholds, you will receive an email notification indicating that pre-funding is required.

🔄Pre-Funding Process

You will receive an invoice for the items requiring pre-funding. The invoice is sent manually at the beginning of each month in two batches:

Before the 3rd of the month for employees with a 6th cut-off date

Before the 7th of the month for employees with a 15th cut-off date

To proceed, you must transfer the pre-funding amount to Omnipresent’s account before the payroll cut-off date (6th or 15th).

🏦Payment Execution

Once pre-funding is confirmed, the bonus payments will be processed as part of the normal payroll cycle.

If the funds are not received by the payment deadline, the bonus will not be included in that month's payroll cycle.


What You Need to Do

  1. Review Planned Bonus Payments: Evaluate any upcoming bonus payments to determine if they exceed the specified thresholds.

  2. Submit Before Deadline: Ensure you submit variable pay by the deadlines listed below:
    - 30th of the previous month for employees with a 6th cut-off date
    - 8th of the month for employees with a 15th cut-off date

  3. Receive manual invoice: The invoice is sent manually at the beginning of each month in two batches:
    - Before the 3rd of the month for employees with a 6th cut-off date

    - Before the 7th of the month for employees with a 15th cut-off date

  4. Meet Pre-Funding Deadlines: Transfer funds for pre-funding by the agreed-upon date to avoid any delays in payment processing.
    - 6th of the month for the 6th cut-off date
    - 14th of the month for the 15th cut-off date

Large Bonus Submission Deadline

Payroll Cut-off Date

Manual Invoice Created Before

Payment Deadline

30th of the previous month

6th

3rd

6th

8th

15th

7th

14th

Note: submitting a large bonus after the submission deadline will result in that bonus being paid out in the next payroll cycle. The same applies if the large bonus is submitted, but not paid before the payment deadline.


Need help?

We understand that this policy introduces an additional step, but it is essential for maintaining compliance and ensuring the reliability of our payroll services. Should you have any questions or require further clarification, please don’t hesitate to reach out to your Omnipresent contact or our Support team at help@omnipresent.com.

Thank you for your cooperation and continued trust in Omnipresent. We are committed to providing the best possible payroll experience while adhering to global financial standards.

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