Contractor Invoice Approval + Pre-Funding Expectations for Organization Administrators

🎯 Purpose

To ensure contractors and employees are paid on time, Admins are responsible for timely invoice approvals and prefunding payments. Following these timelines ensures all contributors and employees are paid on time without delays.

Invoices in a ‘submitted’ state will not produce a prefunding invoice to Admins. Once all invoices are approved or rejected, a prefunding invoice will be sent to initiate payment.

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🧾 Contractor Invoices

• Newly hired contractors must manually submit their first invoice in Toku.
• Contractors who manually submit invoices must do so by the 19th of each month. Contractors on auto-submission will have invoices appear as ‘submitted’ automatically.
• Admins must review and approve all invoices by the 20th of each month.
  • Toku will not issue a prefunding invoice until all contractor invoices have been approved by the client. ⚠️ If an invoice is not approved by the 21st, the contractor’s payment may be delayed.

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💸 Prefunding Payment

• When Toku issues a prefunding invoice, Admins must send funds within 48 hours of receipt.
  • If payment is not received at least 3 business days before pay date, your contractors will not be paid on time.
• This ensures Toku has sufficient funds to process payroll on time.
• Payment is released on the last business day of each month. ⚠️ If prefunding is not received on time, payroll for employees and contractors will be delayed to the following month.

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📅 Key Dates & Deadlines

For detailed payroll timelines, refer to this article:

• Contractor Calendar (you can export this calendar to your personal calendar for reminders) 👉 Use these calendars to plan ahead for invoice approvals, prefunding, and payroll cutoff dates.

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✅ Admin Checklist

For Contractor Invoices

• [ ] Confirm all contractor invoices are submitted by the 19th

• [ ] Approve invoices in Toku by the 20th For Prefunding

• [ ] Review prefunding invoice immediately upon receipt

• [ ] Send funds within 48 hours of receiving invoice from Toku

  • [ ] Ensure payment is received by Toku at least 3 business days before pay date

• [ ] Verify confirmation of payment so payroll can run on the last business day

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📌 Summary

• Contractor invoices: Submit by the 19th → approve by the 20th
• Prefunding: Send funds within 48 hours of invoice receipt from Toku
• Payroll: Runs on the last business day of the month