The Complete Guide to Earned Wage Access

Earned Wage Access is also often called On-demand pay. As it sounds, it means paying employees for work as they earn it. Instead of waiting weekly or biweekly for total worked hours to be paid, on-demand pay pays out as needed.

It works by integrating with an employer’s payroll system to track hours worked and wages earned in real-time. By giving employees greater control over their wages, EWA can help employees avoid expensive payday loans, cover unexpected expenses, and improve their financial stability. This helps employees manage their finances more effectively and can reduce financial stress.

Tapcheck is free for businesses and can enhance team performance by letting employees access their earned wages whenever they want. This can lessen worker stress, and even increase profits for your business. This translates to an average 49% increase in employee productivity and a 74% reduction in absenteeism for businesses using Tapcheck.

Learn more about Earned Wage Access and On-Demand Pay below!
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Diving Deeper Into Earned Wage Access

Does earned wage access affect how I run my business?


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.


Is earned wage access a loan?


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.


How can you get paid early with an earned wage access app?


There are a few companies providing EWA to employers. For the sake of this example we’ll present our solution with our app since this is what we do best!

Step 1: The Employer signs up to an earned wage access company such as Tapcheck. 

The first step is to make sure your employer signed up for a company that provides earned wage access. Their payroll and attendance will need to be synced by our company so that we know when you have funds available.

If your employer is not yet offering everyday pay, it would be a good opportunity to entice him to offer this perk at no cost to their company. Feel free to refer your employer by clicking here.

Step 2: Employees download the EWA app when the employer is ready.

Tapcheck is available both on IOS and Android devices. Once you’ve downloaded the app, create your account and move to step 3. 

Step 3: Getting Paid!

Congratulations! You’re one step closer to on-demand pay! After your account has been setup, your balance will update everyday that you’re done working. Here’s how to start making a transfer:


Earned Wage Access VS Payday Loans: What's the difference?


Earned Wage Access (EWA) is a financial wellness benefit provided by an employer for their employees. This allows workers to get some of their earned money before their regular payday, typically for a flat fee or even for free. This can act as a financial cushion, helping employees manage unexpected expenses and avoid the pitfalls of financial stress. EWA has gained popularity for its low-cost structure and for promoting financial wellbeing among employees.

On the other end, payday loans are short-term, often high-interest loans provided by lenders to individuals who require immediate cash before their paycheck arrives. The interest rates on these loans can be extremely, leading to a potentially dangerous cycle of debt if the borrower cannot repay on time. The structure of these loans is often criticized for being predatory, since the ease of obtaining a loan tends to trap vulnerable borrowers in a cycle of increasing debt.


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Maximum Benefit. Minimal Effort. Zero Cost.

Earned wage access should be beneficial for employers, as well as employees. We’ve designed our Tapcheck systems to integrate seamlessly with existing payroll services, which means HR departments don’t have to worry about increased work or responsibilities. Tapcheck makes on-demand pay simple.

No Cost for Businesses

Tapcheck is 100% free for businesses. Offer your employees increased financial flexibility with no cost to the bottom line.

On-Demand Pay

Employees can access earnings before payday. Simply log into the app and transfer the available amount you need.

Instant Transfers 24/7

Employees can transfer wages they’ve already earned whenever they need them and receive their requested funds within minutes.

Low Fees for Employees

Employees only pay a common fee per transaction, same as ATM fees, and cannot avoid paying interest rates that start a debt spiral like traditional payday lenders.

100% Online

Tapcheck integrates with any payroll system and gives employees the ability to access their earnings online via the Tapcheck website or from any smartphone with our app, which is available in both Google Play and the App Store.

No Credit Checks

Employees don’t have to worry about getting approved for accessing their earning with Tapcheck. Transfers are based on the money they’ve already earned.

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