Government payment timeline

How to read the result

The expected payment date is the invoice date plus the payment terms, plus a pass-through window for each layer between you and the agency. If you hold the prime contract, there are no layers and the date is simply the end of the payment terms. Under the Prompt Payment Act and the rules written under it, federal agencies generally pay a proper invoice within about 30 days, and owe interest when they pay late. The number of days, what counts as a proper invoice and the interest rate all come from the contract and the current regulations, so treat the default as a starting point and read yours.

“Plan payroll for” is the full stretch from invoice to cash, and the payroll count is how many times you will pay your people before this invoice pays them back.

What to do about it

The clock starts when a proper invoice is received, so an invoice that is missing a required element starts over. Learn exactly what your contract and the agency’s invoicing system require, and send a complete invoice the day the period closes. If you are a subcontractor, the agency’s clock runs for the prime, not for you, so the clause in your subcontract that says how many days after the prime is paid you get paid is the one that sets your float. Ask for it in writing before you start. Finally, put the expected date in your cash plan and count the payrolls in between. Our guides on the Prompt Payment Act in plain English and subcontracting on federal work cover the details.