Earned wage access is a new tool that companies have been using, which can help attract employees and entice employees to stay. Ninety-three percent of employers say that earned wage access is a major factor in keeping their employees.
What is earned wage access, you say? We’ll tell you.
This article provides all the information you need to know, from what earned wage access is to how earned wage access programs help you and your employees. We’ll even tell you laws involving earned wage access.
If you’re ready to learn whether you should implement this tool, all you need to do is keep reading.
What Is Earned Wage Access?
Earned wage access is a program that many companies are implementing. Simply defined, earned wage access gives your employees the chance to access money more frequently. Rather than wait for payday, they can get access to the wages for any hours they’ve already worked.
This is different from payday loans. Earned wage access doesn’t charge fees or have high-interest rates out of your next paycheck. All you need to do to implement this is find a wage access program to integrate with your current payroll provider.
As of late, however, earned wage access is beginning to be regulated by the law. Currently, only Nevada and Missouri have earned wage access laws.
This law requires earned wage access programs to register with the state and pay an annual fee. It also requires the provider to give specific explanations to the people it partners with, as well as come up with procedures to address complaints.
How Earned Wage Access Helps
Earned wage access is beneficial to both you and your employees for many reasons.
Earned wage access eases financial stress on your employees. This means they have less to worry about, which allows them to focus more on their work. This leads to increased productivity at your business.
In addition, you will have an easier time hiring and keeping employees. Employees are drawn to companies with earned wage access because it shows that your business is willing to make things better for employees.
However, if you don’t think you could implement earned wage access, you could consider paying your employees more often.
This has similar effects to earned wage access, as it means your employees can pay for their needs more frequently. It can also be more beneficial for your business than a bi-weekly schedule might be.
Reach Out to Us
Now that we’ve answered the question “What is earned wage access”, we hope that you have all the information you need. However, if you have more questions or concerns, you should reach out to us.
At Valor Payroll Solutions, you can speak to payroll experts. This means that we will be able to answer any questions you have, which will help make you a better employer.
Don’t wait- reach out to us today. Let us answer all your questions so you can help your employees!
