recruit anyone turnover daily pay benefit 1. What's to prevent my employees from spending all of their money before payday, leaving them worse off financially? 2. Can I limit how an employee uses it? 3. How do I roll this out? 4. How do I get my payroll team on board? - Funding: Your payroll team is focused on ensuring the company does not fund employee advances. Funding employee advances creates an excessive burden on the payroll and treasury teams, both from an operational and funding perspective. Be sure to structure your program so that the vendor funds all employee advances.
- Tax withholdings: Your payroll team does not want to file daily tax withholding. To avoid that, select a daily pay vendor who funds all employee advances so that the company is not funding any advances and triggering tax withholding requirements.
- Compliance: Your payroll team does not want to be “cutting edge” as it relates to a novel interpretation of state wage-deduction laws. Make sure that the daily pay program is designed so that the employee still receives 100 percent of his or her net wages on payday, so there are no unintentional wage deductions committed by your company.
Jason Lee is founder and CEO of DailyPay.
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