TimerlessLate fee calculator
In the US, a late fee is a term you set, not a right in law. Put in the invoice and the late fee in your terms to see what it comes to, with wording to paste into your reminder.
late fee on top of the invoice, late.
| Late fee at | |
|---|---|
| One-time late charge | |
| Total now due, with the invoice |
Not late yet
Your late fee starts the day after.
No late fee
Put in the late fee your terms set: a % a month, a one-time charge, or both. None in your terms? Then there’s nothing to add this time. Put one in your next contract.
Check that rate
More than 10% a month is far above what states allow. Check the rate in your terms.
Your figures go here
Put in the invoice total, the day it was due and your late fee.
Timerless adds your late fee to your reminders
Set your late fee once and it’s printed on every invoice Timerless makes from the hours it tracked. It drafts a reminder before the due date, on the day, and 7 and 21 days late. The three-weeks-late one adds the late fee, worked out exactly like this, and only to invoices that carried it.
Late fees in the US, in plain words
It’s in your contract, not the law
No US law adds interest to a late invoice between businesses by default. A late fee is something you and your client agree before the work starts: in your contract, your proposal or the payment terms on your invoice.
Agree it before you start
A fee you add only once the client is late is hard to enforce. Put the rate, and when it starts, in writing, and print it on every invoice.
Keep it reasonable
Most states limit how much interest can be charged (usury laws), and a fee that looks like a penalty may not hold up. 1% to 1.5% a month is common. Check your state’s limit before you set yours.
How it’s counted here
A monthly rate is counted by the day: 1.5% a month is 0.05% for each day late, so 21 days late adds 1.05% of the invoice. A one-time late charge, like $25, is added once.
Freelance protection laws
Some places, including New York State, New York City and Illinois, have freelance laws that set a default 30-day payment term and give freelancers their own remedies for late payment, separate from any late fee. Check what applies where you and your client are.
Clients who want a W-9 first
Many US clients won’t pay until they have your Form W-9. Read the W-9 basics.
This is a guide, not legal advice. Check your contract, and get advice before you take a client to court.