In recent years, earned wage access (EWA) has emerged as a beneficial financial service for employees looking for financial flexibility. It has revolutionized how employees interact with their earnings and made it easier for workers to pay for expenses as they arise without having to pay late fees, overdraft fees or resort to predatory payday loans.
While the benefit to employees looking for greater financial flexibility is immense, an EWA program can also compliment a broader financial wellness program as well as positively impact your business in terms of reduced turnover, lower absenteeism rates and boosted productivity.
What is EWA?
EWA empowers employees to receive a portion of their earned wages ahead of the standard payday, providing crucial support for unexpected expenses or bridging financial gaps when funds are tight. This forward-thinking payroll solution is gaining traction across various industries such as fast food, retail and healthcare, as it fulfills a growing demand for greater financial flexibility among employees.
EWA In Action
EWA gives your employees access to funds they’ve already earned but have not yet been paid due to traditional pay cycles, such as bi-weekly or monthly schedules. With EWA, they’re free to access a percentage of the wages they’ve already earned whenever they want. Employers are removed from the process allowing employees to log into the EWA app to check their earned wages. An employer’s payroll service provider reconciles pay records to make sure that the employer’s ledger matches the distribution to employees. With EWA, at payday the remaining pay is calculated, and standard deductions are taken out.
How We Can Help
DM Payroll Solutions clients and their employees can get early access to earned wages in just minutes, using our earned wage access solution, courtesy of our partner, ZayZoon. ZayZoon specializes in providing EWA solutions tailored to small and midsize businesses. It’s a voluntary benefit that reduces financial stress related to cash flow shortfalls between paychecks. With this service, you can offer on-demand pay to your workers instantly, through multiple payout options including direct deposit, Venmo, VISA prepaid card, instant gift cards and a gas card. Employees can access up to 50% of their already earned wages for at most, a $5 fee, with fee-free payout options available. There is no payroll card required, all employees can participate at no cost, liability or risk to the employer. Offering this benefit boosts employee satisfaction, productivity and retention. Contact us today to learn how you can offer this feature to your employees.
