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Why don't my payroll deductions match my Thatch bill?

Your Thatch invoices and employee payroll deductions may not match in any given month, and that's expected. Here's why:

Billing and deductions run on different schedules:

Thatch bills your company monthly based on employee enrollment (typically on the 1st of each month)

Payroll deductions are spread across your pay periods (weekly, bi-weekly, semi-monthly, etc.)

Example: If an employee's monthly premium is $300 and you run bi-weekly payroll, their deduction would be ~138 per paycheck (roughly $300 divided by 2.17 pay periods per month on average). Some months will have 2 pay periods and others will have 3.

The important part: Employee deductions will reconcile with your Thatch invoices over the course of the year. You're only charged for active enrollments, and total deductions will match total premiums annually.

If you have questions about how deductions are configured in your payroll system, reach out to your payroll provider or your Thatch account team.

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