At Humaans, we offer an annual billing option for our customers. This means that instead of being charged on a monthly basis, you will be charged once a year for your subscription. In this article, we will explain the two components of our annual billing and how it works.

When you sign up for an annual plan, you will be asked to specify the number of employees you want to purchase seats for. In most cases, this will act as your seat floor.

A seat refers to an active member or employee that is on your Humaans account. It is important to note that this does not include users in new hire status, as they do not count towards your subscription pricing.

The seat floor is the minimum amount of seats that you will be charged for moving forward. This means that even if you have fewer active employees than your seat floor, you will still be charged for the specified number of seats.

After paying your annual subscription, If you add more seats to your account above your seat floor, the cost of each additional seat will be prorated based on the amount of time left on your annual subscription. This prorated cost will be drafted and sent in an invoice to the billing email we have on file, and can be viewed under Payment history in Settings > Billing.

Similarly, if you remove an employee from your account who was added above your seat floor, the cost for that seat will be prorated and added as a credit to your account. This credit will be applied to future charges.

You can view the details of these charges and credits on each invoice under the line items section. Positive charges indicate additions, while negative charges indicate credits.

At your renewal period, a new annual invoice will be issued based on your current seat amount. This invoice will charge you for the year based on that seat amount.

It's worth noting that if your seat amount is below your organisation's seat floor, your annual invoice will be charged based on the seat floor figure.

Let's say that your annual billing period is 1 Jan - 31 December 2025, and you paid for 50 seats as part of your annual invoice.
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You don't add/remove any users for the first 3 months. No invoices are sent to your organisation.

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However, on 1 April 2025, you add a new member to your organisation, which adds a new seats to your subscription. Our system will automatically identify the time when this seat was added, calculate how much time is between that time and your renewal date, and create two new line items for the invoice:
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- One is a charge; the amount of time on the new seat amount (51) from 1 April 2025 - 31 December 2025.
- One is a credit; the amount on the old seat amount (50) that was not used from 1 April - 31 December 2025.
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The final figure will be the amount that you are charged on the invoice.

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Let's say later in the year, On 15th September 2025, you fully offboard a member from your organisation, which removes a seat from your subscription, bringing your amount to 50. Two new line items are created:
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- One is a charge; The amount of time on the new seat amount (50) from 15 September - 31 December 2025.
- Once is a credit; The amount of unused time on the old seat amount (51) from 15 September - 31 December 2025.
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In this case, you would end up with a credit on your account, which will then be used to pay future invoices on the account. This is because the the amount of unused time on the higher seat amount will be larger than the cost of the lower seat amount.

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In December, the annual invoice will automatically get drafted by our billing system based on the current seat amount you are on; in this case, it will be 50 seats if no further changes in seat amount were made. This invoice will charge for the period 1 January 2026 - 31 December 2026.

To review your previous and upcoming invoices, simply go to Settings > Billing. For more information on managing your billing information, please see our article on managing your billing information.

We hope this article has helped you understand our annual billing process better. If you have any further questions, please don't hesitate to reach out to our support team for assistance.