2020’s Newest Payroll Trend
Covid-19 has brought about change in every sector of the economy and virtually every aspect of our personal lives. Many workers, regardless of income level, employment type, race, gender, age or geography struggle financially between pay periods.
The majority of employers pay employees in arrears, holding earned wages two weeks or more. Those who struggle financially may resort to using high interest credit cards and payday loans to get by in between pay dates.
On demand payroll is based on the premise that net pay is continuously updated when a time, benefit, or HR record is changed. Most payroll services already automate these functions and payroll administrators can set limits in accordance with specific business rules.
Our industry typically has a high ratio of “gig workers”, independent contractors or contract firm workers, who regularly provide services to clients, but who are paid by the job rather then a salary or regular hourly wage.
With on-demand payroll, employees and contractors can choose a digital wallet, debit card or a combination. Actual wages can be available to workers in real time, even daily, from a mobile application.
These services already have on-demand solutions available:
- Ceridian’s Dayforce Wallet
- Paychex Worx
(Author notes this article is for informational purposes only and IAASE is not endorsing any of the above vendors)