How earned wage access works with your payroll

If you’re thinking about offering earned wage access, the first question is usually about payroll. Will it change the pay run? Will it create work for the payroll team? Will the business be out of pocket? The short answers are no, very little, and no. Here’s how it works.

The idea in one paragraph

Earned wage access lets your employees withdraw part of the pay they’ve already earned, before payday. CashD connects to your payroll and HR software to see what each person has earned. Employees withdraw through the CashD app, CashD funds the withdrawal, and on payday each person’s pay is automatically adjusted for what they’ve already accessed.

Step one: connecting to your payroll

CashD already integrates with a range of payroll, HR and workforce management providers, including MYOB, Employment Hero, Deputy, Reckon, Xero, Astute Payroll, Wageloch, HR3. If you use one of these, set-up is minimal.

The connection lets CashD see the information it needs to work out what each person has earned so far in the pay cycle, such as hours worked and pay rates. Employees don’t need to enter anything, and CashD never needs access to their bank accounts.

If your payroll software isn’t on the list, talk to us. We can tell you what’s possible.

Step two: choosing your settings

You stay in control of how earned wage access works for your business. Employer-controlled settings, usage monitoring and safeguards support responsible use, while each employee’s privacy is maintained.

You also decide who pays the withdrawal fee. By default, employees pay a fee of 1.99% per withdrawal. Some employers choose to cover it for their team, as part of their benefits.

Step three: inviting your team

Once you’re set up, your team gets an invitation by email. They download the app, sign in, and can see what they’ve earned. After each completed shift, their available balance goes up.

Employees can access up to 50% of the pay they’ve earned so far in the cycle. Transfers go straight to their bank account. There’s no credit check, no interest and nothing to default on, because they’re only ever accessing their own pay.

It helps to tell your team about it yourself, not just rely on the email. A short note from a manager, a mention at a team meeting or a line in onboarding makes it clear it’s a genuine benefit and that using it is normal.

Step four: payday

This is where most payroll teams expect complexity, and where there isn’t much.

Your pay run stays the same. You process payroll as usual, and on payday each person’s pay is automatically adjusted for what they’ve already accessed. Someone who accessed $200 during the cycle receives the rest of their pay, less that $200 and any fee, on the normal date.

Because withdrawals come out of pay that’s already been earned, there’s nothing for employees to repay separately and nothing for them to fall behind on.

Who funds the withdrawals?

CashD does. CashD funds employee withdrawals and manages the movement of funds, so your business doesn’t need to pre-fund anything or change its cashflow. There’s no cost to offer CashD.

Common questions from payroll teams

Does it add work at pay time?

It shouldn’t. The adjustment for what each person has accessed is handled automatically as part of the pay run.

What about casual and part-time staff?

Earned wage access is often most useful for people whose hours change from week to week, because their pay is harder to plan around. Employees can only access what they’ve already earned, so it works the same way whatever their hours.

What if someone leaves mid-cycle?

Is it a loan?

No. Earned wage access is pay that’s already been earned, accessed early. There’s no interest, no credit check and nothing to default on.

Is it right for your business?

Earned wage access tends to suit businesses with hourly, shift-based or casual teams, and anyone whose staff are paid weekly, fortnightly or monthly and feel the gap between paydays. It’s cost neutral for the business, and it gives your people more control over the timing of their own pay.

The best way to see whether it fits is to look at it with your own payroll set-up in front of you. We’re happy to walk you through it.

General information only, not financial advice. Read our disclaimer.