Woman getting cash at ATMrecruit anyoneturnoverdaily pay benefit1. What's to prevent my employees from spending allof their money before payday, leaving them worse offfinancially?2. Can I limit how an employee usesit?3.How do I roll this out?4. How do I getmy payroll team on board?

  • Funding: Your payroll team is focused onensuring the company does not fund employee advances. Fundingemployee advances creates an excessive burden on the payroll andtreasury teams, both from an operational and funding perspective.Be sure to structure your program so that the vendor funds allemployee advances.
  • Tax withholdings: Your payroll team does notwant to file daily tax withholding. To avoid that, select a dailypay vendor who funds all employee advances so that the company isnot funding any advances and triggering tax withholdingrequirements.
  • Compliance: Your payroll team does not want tobe “cutting edge” as it relates to a novel interpretation of statewage-deduction laws. Make sure that the daily pay program isdesigned so that the employee still receives 100 percent ofhis or her net wages on payday, so there are no unintentional wagedeductions committed by your company.

Jason Lee is founder and CEO of DailyPay.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.