Intercompany Assignments & Billing
Manage employees who work at a different company than their employer, and handle cross-company cost recharges
When your group has multiple companies, employees sometimes work at a location that belongs to a different entity than the one that hired them. Hopshift's intercompany feature handles this: the employee stays on their employer's payroll, but the company where they physically work is billed for the cost. This guide explains how to set up assignments, how payroll and clock-in behave, and how to manage the billing workflow.
What is an Intercompany Assignment?
An intercompany assignment is a formal record that says:
- Source company (employer): The entity that hired the employee and runs their payroll.
- Host company: The entity where the employee physically works day to day.
The source company pays the employee as part of its normal payroll. After finalization, Hopshift automatically generates a recharge record so the host company is billed for the employee's cost. This keeps payroll simple (one company pays) while ensuring the right entity bears the economic cost.
Common scenarios:
| Scenario | Example |
|---|---|
| Secondment | A chef from Restaurant A is sent to Restaurant B for three months to help with a new menu launch |
| Staff rotation | An employee rotates between two outlets on a regular schedule |
| Shared services | A finance team member is employed by HQ but works at a subsidiary |
An intercompany assignment is temporary or ongoing. The employee keeps a single employee record at their source company. For permanent moves where the employee changes employer, use an Employee Transfer instead.
Setting Up an Intercompany Assignment
Where to find it
Navigate to Group > Intercompany in the left sidebar (labelled "Interco Billing"). This page is only visible to Group Admins and users with access to multiple companies.
Creating an assignment
- Click Create Assignment.
- Fill in the assignment details:
| Field | Description |
|---|---|
| Employee | Search and select the employee being assigned |
| Source company | The employee's current employer (auto-filled from their profile) |
| Host company | The company where they will work |
| Effective from | The date the assignment starts |
| Effective to | Optional end date. Leave blank for open-ended assignments. |
| Cost basis | How the host company will be charged (see below) |
- Click Save. The assignment is now active.
Cost basis options
When creating an assignment, you choose how the host company is billed:
| Cost Basis | How it works |
|---|---|
| Actual cost | The host is charged the exact payroll cost: base pay, overtime, allowances, and employer contributions (SSO). This is the most common option. |
| Fixed rate | A fixed monthly amount regardless of the employee's actual pay. Prorated automatically if the assignment starts or ends mid-month. |
| Cost plus markup | The actual payroll cost multiplied by a markup percentage. For example, actual cost + 10% to cover administrative overhead. |
You can also configure which pay components are included in the recharge: basic pay, overtime, allowances, bonuses, and employer contributions. By default, all components are included.
Only one intercompany assignment can be active per employee at any time. To change an employee's host company, end the current assignment first, then create a new one.
How Clock-In Works for Intercompany Employees
When an employee is on an intercompany assignment:
- They clock in at the host company's kiosk using their normal clock code.
- The system automatically recognizes the employee via their active intercompany assignment and records the clock entry under the host company.
- The employee does not need a separate account or clock code at the host company.
This means the host company's attendance records accurately reflect who is physically present, while the employee's payroll remains with their source company.
How Payroll Works
Intercompany assignments do not change where payroll is run. The process stays simple:
- The employee appears in the source company's payroll run (their employer).
- Payroll is calculated and paid by the source company as normal, including all earnings, deductions, tax withholding, and SSO contributions.
- When the payroll run is finalized, Hopshift automatically generates intercompany recharge records for every employee with an active assignment.
The recharge record captures the employee's full cost breakdown for that pay period and attributes it to the host company. No manual steps are needed during payroll.
If an assignment starts or ends mid-period, the recharge is prorated automatically based on the number of days the assignment was active during the pay period.
The Billing Workflow
After payroll finalization, intercompany recharges follow a four-step status workflow:
Status flow
| Status | Meaning |
|---|---|
| Generated | Recharge record was created automatically on payroll finalization. Ready for review. |
| Confirmed | An admin has reviewed the recharge and confirmed the amounts are correct. |
| Invoiced | An invoice has been issued to the host company. |
| Settled | Payment has been received and the recharge is closed. |
The Intercompany Dashboard
Navigate to Group > Intercompany to see all recharges. The dashboard shows:
- Recharges grouped by source and host company pair
- Current status of each recharge
- Total amount per recharge
- The pay period the recharge relates to
Click any recharge to see the line-item breakdown for each employee:
| Line item | Description |
|---|---|
| Basic pay | The employee's base salary or hourly earnings for the period |
| Overtime | Overtime pay included in the recharge |
| Allowances | Housing, transport, meal, and other allowances |
| Employer contributions | Employer-side SSO contributions |
| Markup | If cost-plus-markup is configured, the markup amount is shown separately |
Advancing the status
To move a recharge forward:
- Open the recharge detail page.
- Review the line items and totals.
- Click the appropriate action button: Confirm, Mark as Invoiced, or Mark as Settled.
Each status change is logged with a timestamp and the user who performed it.
Balance Matrix
The Balance Matrix page (under Group > Intercompany) shows a summary grid of which companies owe what to each other across all open recharges. This gives you a quick overview of net intercompany balances across the group.
Exporting
Click Export to CSV on the dashboard or balance matrix to download the data for your accounting system.
Ending an Assignment
To end an intercompany assignment:
- Go to Group > Intercompany and find the active assignment.
- Click the assignment to open it.
- Set an Effective to date.
- Click Save.
From that date onward, the employee will no longer be recognized at the host company's kiosk, and no further recharges will be generated. Historical recharge records are preserved.
Intercompany Assignments vs. Employee Transfers
These two features serve different purposes. Choosing the right one matters:
| Intercompany Assignment | Employee Transfer | |
|---|---|---|
| Purpose | Employee works at another company temporarily or on an ongoing basis | Employee permanently moves to a new company |
| Employee records | One record. Employee stays at source company. | Two records. Old record is terminated, new record is created at the destination. |
| Payroll | Source company runs payroll. Host is billed via recharges. | New company runs payroll going forward. |
| Best for | Secondments, rotations, shared staff | Permanent relocations, organizational restructuring |
| Reversible? | Yes, end the assignment at any time | Not easily. Requires a new transfer back. |
If you are unsure which to use: if the employee will return to their original company or is splitting time between locations, use an intercompany assignment. If the move is permanent and the employee's employer is changing, use a transfer.
Frequently Asked Questions
Can an employee be assigned to more than one host company at the same time?
No. Only one intercompany assignment can be active per employee. To move them to a different host company, end the current assignment and create a new one.
What happens if I forget to end an assignment?
Recharges will continue to be generated each time the source company finalizes payroll. Review your active assignments periodically to ensure they are still current.
Can I edit a recharge after it is generated?
No. Recharge amounts are calculated from the finalized payroll data and cannot be manually edited. If the payroll figures were wrong, you will need to address the payroll data first and regenerate.
Do intercompany employees appear in the host company's reports?
Clock-in and attendance records are stored under the host company. Payroll reports show the employee under the source company. The intercompany dashboard bridges the two views.
Who can manage intercompany assignments?
Group Admins and users who have admin access to both the source and host companies.