The Complete Guide to Earned Wage Access

EWA is also changing the way employers manage payroll. Integrating EWA with a company’s payroll system requires real-time tracking of hours worked and wages earned, which can improve the accuracy and efficiency of payroll processing. Additionally, offering EWA as a benefit can be a powerful recruiting and retention tool for employers, as it shows a commitment to employee financial wellness and can help attract and retain top talent. Indeed, A 2020 survey by the National Small Business Association found that 38% of small businesses paid their employees bi-weekly, while 29% paid weekly and 24% paid semi-monthly. Based on those statistics it would be easy to see how an employer offering a flexible pay schedule could become attractive to prospective employees in this competitive market for talents. Overall, EWA is transforming payroll into a more employee-centric process that prioritizes flexibility, convenience, and financial stability.

Earned wage access (EWA) is not technically a loan, as employees are accessing wages they have already earned and are not borrowing money that they will need to repay with interest. EWA providers charge a fee for the convenience of accessing earned wages early, which is typically a small percentage of the amount requested or a flat fee per transaction. However, it’s important to note that EWA is not a replacement for emergency savings or long-term financial planning, and employees should still strive to save and budget responsibly to avoid relying on EWA or other forms of short-term financing.

See content from site https://tapcheck.com/earned-wage-access/

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