Who issues the payroll invoice, the client or the EOR?

The Employer of Record issues it. Because the EOR is the legal employer that runs local payroll, it pays the worker, remits tax and contributions, then bills the client for the full amount plus its service fee. The client pays the single invoice rather than running payroll in each country.

Is the service fee shown separately on a payroll invoice?

It should be. A transparent invoice lists the service fee as its own line, separate from salary and statutory costs, so you can see exactly what the provider charges for its work. When the fee is folded into a single total, it becomes hard to compare providers on price.

What is the difference between a payroll invoice and a payslip?

A payslip goes to the employee and shows their own gross pay, deductions and net pay for the period. A payroll invoice goes to the client company and totals the cost of employing everyone in that cycle, including employer contributions and the provider's fee. They serve different readers.

Can the exchange rate on an invoice change between pay cycles?

Yes. Currency markets move daily, so the rate applied will differ from one cycle to the next, and that is normal. What matters is that the rate is disclosed each time and set close to the mid-market benchmark, so movement in the market, not hidden markup, explains any change.

Glossary

Payroll Invoice

A payroll invoice is the billing document a provider such as an Employer of Record issues to a client each pay cycle, itemising worker salaries, employer-side statutory contributions, the service fee, and any foreign exchange rate applied to cross-currency payments.

Reviewed by Teamed's in-house employment-law team·Last updated 28 July 2026

Also known as: EOR invoice, employment invoice

What is Payroll Invoice?

A payroll invoice is the document that converts a pay cycle into a single bill. When you employ people through an Employer of Record (EOR), you do not run local payroll yourself. The EOR calculates each worker's gross pay, withholds tax and social contributions, adds its own service fee, and sends you one invoice covering the total.

A clear payroll invoice breaks that total into named lines: gross salary, employer statutory contributions, benefits, the service fee, and, where the worker is paid in a different currency to the one you are billed in, the exchange rate used. When those lines are itemised, you can check each charge against local statutory rates and a public FX benchmark.

Invoices that fold everything into one figure, or that apply a proprietary exchange rate without disclosing it, are where hidden margin tends to sit. Teamed itemises the FX rate on every invoice as standard, so the conversion cost is visible rather than buried.

What should a payroll invoice include?

At minimum, a clear payroll invoice shows gross salary per worker, employer statutory contributions, any benefits or allowances, the provider's service fee, and the billing currency. Where payment crosses currencies, it should also state the exchange rate applied and the date it was set, so each line can be checked independently.

Why does the exchange rate on a payroll invoice matter?

When a worker is paid in local currency but you are billed in another, the provider converts between the two. If the rate is not disclosed, a markup of a few percent can sit inside the total unseen. A stated rate lets you compare it against the mid-market benchmark and see the true conversion cost.

How can you check a payroll invoice for hidden costs?

Compare each line to what local law requires: statutory contribution rates are published by the tax authority, so employer costs should match. For the currency line, check the invoice rate against a public benchmark such as the European Central Bank's daily reference rate. Any gap between the two is the provider's FX margin.

Key facts

ECB euro reference exchange rates: Published each working day at around 16:00 CETThe European Central Bank publishes euro foreign exchange reference rates each working day at around 16:00 CET, giving a public mid-market benchmark to check the FX line on a payroll invoice against.Source: European Central Bank· verified 2026-07-28

Frequently asked questions

Who issues the payroll invoice, the client or the EOR?
The Employer of Record issues it. Because the EOR is the legal employer that runs local payroll, it pays the worker, remits tax and contributions, then bills the client for the full amount plus its service fee. The client pays the single invoice rather than running payroll in each country.
Is the service fee shown separately on a payroll invoice?
It should be. A transparent invoice lists the service fee as its own line, separate from salary and statutory costs, so you can see exactly what the provider charges for its work. When the fee is folded into a single total, it becomes hard to compare providers on price.
What is the difference between a payroll invoice and a payslip?
A payslip goes to the employee and shows their own gross pay, deductions and net pay for the period. A payroll invoice goes to the client company and totals the cost of employing everyone in that cycle, including employer contributions and the provider's fee. They serve different readers.
Can the exchange rate on an invoice change between pay cycles?
Yes. Currency markets move daily, so the rate applied will differ from one cycle to the next, and that is normal. What matters is that the rate is disclosed each time and set close to the mid-market benchmark, so movement in the market, not hidden markup, explains any change.

Related terms

Note

This is general information, not legal advice. Statutory rules vary by country and change over time.

Glossary

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Last verified 2026-07-28