What is the deposit?
The deposit is a refundable amount held on your account for the duration of your MSA. It is not a fee or an additional cost.
As the legal employer of your team, Borderless is obligated to fund employee pay, employer contributions, and benefits regardless of whether we have received payment from you. The deposit helps cover this funding obligation.
The deposit is returned when your account is closed and all outstanding balances have been settled.
Is this a new fee or an increase in what I pay?
Neither. The deposit is refundable and does not change your cost with Borderless.
It is held as a receivable on your balance sheet, rather than being treated as an expense.
How is my deposit calculated?
Your deposit is based on your employees’ monthly fully loaded employment cost, which includes employer contributions, benefits, and platform fees.
- ACH (Automated Fund Pull): 1.5 months of employment costs
- Wire or other payment methods: 3 months of employment costs
Example: If an employee’s fully loaded monthly cost is $10,700, your deposit would be $16,050 with ACH or $32,100 by wire.
Rates may vary by country.
What's included in "employment cost"?
Employment costs may include:
- Gross pay
- Employer statutory contributions
- Benefits and pensions
- Other employment-related costs
- Platform fees
These costs form the basis for calculating your deposit requirement.
When is the deposit due?
The required deposit must be fully funded before an employee’s start date.
New hires cannot be onboarded until the required deposit has been received.
What happens if we don't fund the deposit by the deadline?
If the required deposit has not been funded, onboarding for the affected new hire will be placed on hold until the funds clear. This may result in the employee’s start date being delayed.
This only affects the new hire(s) whose deposit has not been funded and does not affect your existing employees.
For previously outstanding balances, a balance that remains unpaid for 15 days, or is paid late more than twice during the term, may move your account to the 6-month deposit tier. You will have 10 business days from notice to fund the increased deposit requirement.
Can I lower my deposit?
Your deposit tier is based on your payment method and payment history.
Switching to ACH (automated fund pull) can reduce your deposit requirement from 3 months to 1.5 months of employment costs. Once your ACH mandate is set up, your deposit requirement will be adjusted accordingly.
What happens when we onboard or offboard team members?
- Onboarding: The required deposit for a new employee must be funded at your current tier before their start date.
- Offboarding: The deposit associated with an offboarded employee is released once any applicable obligations have been settled.
Will you use the deposit if an invoice is late?
Not automatically. The deposit is not a payment buffer that is automatically applied when an invoice goes unpaid. Your invoices remain due and payable in full regardless of the deposit held.
In limited circumstances, Borderless may choose to apply the deposit toward an outstanding amount. Choosing not to do so does not waive our right to apply the deposit later or pursue the outstanding amount through other means.
Where is the deposit held?
Your deposit is held in a segregated, non-operating account with a dedicated ledger for each client. It is not used for Borderless’ operating expenses.