What is the Late Payment Fee Invoice?

To uphold timely payroll processing and compliance with local employment regulations, Horizons issues a Late Payment Fee (LPF) invoice when a client fails to remit payment by the due date of their original service invoice. This invoice is issued in addition to the original invoice and reflects charges associated with delayed payment.


Why is the Late Payment Fee Invoice issued?

Late payments can disrupt essential payroll functions and statutory filings, particularly in global employment contexts. The Late Payment Fee invoice helps offset the administrative and financial risks associated with payment delays.


How is the fee calculated?

The LPF is calculated per overdue invoice within each billing group using a tiered structure:

  • 1% of the invoice value if payment is less than 30 days late

  • 2.5% of the invoice value if payment is 30 days or more late

  • A minimum of $299 USD applies per invoice, regardless of the percentage

The higher amount between the percentage-based penalty and the $299 minimum is applied.

If multiple invoices within a billing group are overdue, they are aggregated into a single LPF invoice for that group.

Example: If a billing group contains two overdue invoices (e.g., one Payroll (PR) and one Service Fee (SF)), the total LPF would be the greater of:

  • The combined percentage penalties (1% or 2.5%) for each invoice, or

  • $299 USD per invoice × 2


How are LPF invoices grouped?

LPF invoices are issued per billing group. Each billing group may represent a distinct legal entity, service line, or currency. Overdue invoices within the same billing group are combined into one LPF invoice.

If a client has multiple billing groups with overdue invoices, they will receive a separate LPF invoice for each group.


Specific considerations for Supplemental Invoices (SI)

While Supplemental Invoices (SIs) are tied to payroll processing and must be paid promptly to avoid salary delays, they are excluded from Late Payment Fee calculation as of June 2025. Despite this, timely payment of SIs remains essential to ensure smooth payroll operations.



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