Workstem has two payment methods, annual payment and monthly payment. Annual payment is a one-time prepayment for one year based on the current number of active employees in the system at that time. Therefore, annual payment customers may have questions: If I add employees in the middle of the billing cycle, how will the system charge?

To clarify this problem, we need to know how the system charges for the first time and how the billing cycle is calculated.

**First charge**

The system charges for the first time based on the number of current employees in group of 5, and the number of employees under 5 is calculated as 5. If you have 22 employees in the system on the day, the calculation will be (22=5+5+5+5+2), you will need to pay the fee for 25 employees.

First payment = 25 * monthly fee of selected plan * 12 months

**Billing cycle**

The billing cycle of the annual payment is from the paid day of using the system to the day before the same day next year. If you are paying to use Workstem from May 1, 2020, the billing cycle is from May 1, 2020 to April 2021. 30th.

**How does the increase in employees affect the charges**

If there is an increase in employees during the settlement period but the total number of employees does not exceed 25, the system will not recharge.

When the system has more than 25 active employees, the system will immediately generate a bill for the newly added number of people, and the "group of 5" rule still applies. We will calculate the fee proportionally according to the remaining period from the time when the bill is generated until the end date of the annual fee plan.

For example, when the total number of employees in the system is 26 on August 1, 2020, because there are 9 months from August 1, 2020 to April 30, 2021, the new bill amount = 5 * selected package monthly fee * 9 months

When your payment takes effect, the system calculates the number of employees based on the 30 Headcounts. No new bill will be generated until the number of employees exceeds 30. However, if the number of employees exceeds 30, the system will generate a new bill according to the above rules.

The fee for the newly added number of people is calculated until the end date of the current annual cycle. In the second year, the system will calculate the fee of the number of people at the beginning of the new annual cycle.