Earned wage access — also known as on-demand pay — is a financial wellness benefit that gives employees access to their earned pay before the traditional, scheduled payday.
Earned wage access (EWA) can be a difference maker for your employees, giving them more control over their finances. This increased control can help alleviate some of their financial stress, allowing them to focus more on their job, resulting in better productivity and engagement.
Quinyx has partnered with DailyPay, the leading earned wage access solution, to help employers activate their workforce and build stronger relationships with their employees by providing them with this financial wellness benefit.
How Earned Wage Access With DailyPay Works
Now that we know the benefits of EWA through DailyPay, let’s take a closer look at how DailyPay works for both employers and employees.
For employers
A key factor in working with DailyPay is the ease for your company across payroll and timekeeping. DailyPay handles the heavy leg work to ensure your company and your employees can enjoy the benefits of EWA.
DailyPay connects with your timekeeping system to determine the employee’s gross earnings (done via batch reporting or through an SFTP or API connection). Once enrolled, their balance is available for transfers.
Employees can transfer the desired amount from their pay balance to their bank account, debit card or pay card at any time before payday. They can choose to transfer their pay instantly (for a small fee) or on the next business day.
DailyPay automatically deposits the Remainder Pay into the employee’s primary bank account on payday.
When an employee requests a transfer of their earned pay, DailyPay directly funds 100% of the transfer value. Any DailyPay transactions are later settled automatically through the company’s normal payroll process. The DailyPay account replaces an employee’s existing direct deposit account within the payroll system so that DailyPay can handle all reconciliation of advanced earned pay without requiring you, the employer, to make any changes to your payroll process.
DailyPay’s proprietary full funding model supports the low-touch experience that clients value, and ensures pay stub continuity for employees, meaning their pay stub remains the same regardless of whether they transferred some of their earned pay within a given pay period or across pay periods.
With the full funding model, DailyPay funds early transfers and the remaining net pay on payday. The company runs its payroll process as usual to reimburse DailyPay. Compare this to the deduction model where your payroll team is responsible for deducting early transfers from each employee's paycheck each pay period. The EWA provider sends the company an invoice for the number of early transfers each pay period.
Only the full funding approach provides employees with continuous access to their earnings even when pay periods are closed, but not yet paid. With other models, there can be a gap in access during this period that occurs every pay cycle.
For Employees
EWA from DailyPay offers employees more than just access to their earned pay. Employees can easily track financial activity, build savings plans, get financial wellness tips and more.
Each day an employee works, they build up what’s their balance for early access in their DailyPay account, which is updated each time the employer lets DailyPay know that the employee has completed a shift. The employee can transfer this balance into a bank account, debit card or prepaid card.
Whatever money is left over in the Available Now section after the employee makes any transfers during a pay period will automatically be paid to the employee on their next payday as Remainder Pay.
Why You Need Earned Wage Access
EWA can be a game changer for both employers and employees. Let’s take a look at some key benefits of implementing EWA in your company.
- Increased recruiting: 96% of companies offering an EWA solution today believe it has a positive impact on employee recruiting.[1]
- Improved employee engagement: 95% of companies offering an EWA solution today believe it has a positive impact on employee engagement.[2]
- Higher employee productivity: 94% of companies offering an EWA solution today believe it has a positive impact on workforce productivity.[3]
- Reduced absenteeism: 82% of companies offering an EWA solution today believe it has a positive impact on absenteeism.[4]
- Greater employee retention: 97% of companies offering an EWA solution today somewhat or strongly agree that providing an EWA solution is helping to attract and retain the right workforce for the future of their organization.[5]
[1] Hanover Research Study: Companies with EWA Solutions, September 2023
[2] Hanover Research Study: Companies with EWA Solutions, September 2023
[3] Hanover Research Study: Companies with EWA Solutions, September 2023
[4] Hanover Research Study: Companies with EWA Solutions, September 2023
[5] Hanover Research Study: Companies with EWA Solutions, September 2023