The DailyPay Blog

The Quarantined Economy: Stress Reduction Hacks

As an organization, we are facing the same COVID-19 challenges as every other organization. To help DailyPay employees who are quarantined in their homes, we have come up with some ideas to help them cope with our new normal. We have conducted some research around these ideas as well and want to share them with you. We hope that they will be beneficial to you as well.

Creating and practicing a meaningful self-care routine is not just about taking luxurious bubble baths. Self-care is a commitment to maintaining your physical, spiritual, mental and emotional well-being to reduce your stress levels. During these trying times of quarantine and chaos, self-care is more important than ever. Tuning in to your needs will help you control your anxiety, avoid burnout and maintain a positive attitude. Here are 5 hacks to keep your stress levels at bay:

Test out new recipes

With all the chaos going on around you, preparing food for yourself and your loved ones can be a very grounding experience. Not only is it necessary for your survival, but it is also a tactile, sensory experience that many people find immensely calming. This decadent lemon pasta is simple to make and only includes a few ingredients that are probably already in your kitchen. Want to smell something warm and delicious simmering away all day while you’re stuck at home? Break out your slow cooker and try one of these warm and comforting recipes.

Experiment with aromatherapy

Stop rolling your eyes at me! Chances are you have scented candles, incense or some form of essential oil laying around the house. It may sound small or frivolous, but these things can add a warm ambiance to your space, as well as soothe anxiety. Beyond just the sensory experience, this response is also biological, because the parts of your brain that process smell are directly linked to the parts that take in information and process emotions. Check out this guide for more information on scents that can help improve your mood and help you be more productive.

Beautify your space

It’s the perfect time to channel your inner Marie Kondo and tidy up. Even something as simple as cleaning that part of your home that seems eternally messy can help you feel productive and in control while all this madness is going on around you. Organizing the avalanche in Tupperware cabinet can make you feel so much more organized and in control. If you’re feeling especially ambitious and want to totally redecorate, check out this guide for sprucing up your home with things you already have inside. Saving a ton of money by not going out? This might be a great time to order online and invest in some new decorations and home furnishings. 

Treat yourself to something special

Again, it doesn’t have to be expensive. Something as simple as your favorite baked good or an amazing cup of coffee can make your day if you take the time to truly savor it. If there’s room in your budget, treat yourself to one or two gifts from your Amazon wish list. Whether it’s comfy new pajamas for all the time spent indoors or new kitchen gadgets for your house-bound culinary exploits, “retail therapy” can be a very positive form of self-care. Just make sure you’re sticking to your budget and shopping within your means.  

Find time for body maintenance and pampering

Finally, the bubble bath section! If a soapy soak isn’t your thing, an at-home mani/pedi might help you feel a little more like yourself. You can also try a homemade face mask customized for your skin type. There are tons of self-massage techniques to help you relieve some of the stress and tension in your body. A free at-home yoga class is a great way to incorporate movement into your day, even if you have limited space or don’t own any workout equipment. If you want to branch out even further, take some time to learn about ayurveda, one of the sister sciences of yoga, and begin your day with a few of these ayurvedic morning rituals to feel totally revitalized.

These ideas just make good logical sense. Another thing that makes good logical sense is allowing employees to access their earned pay every day. If you want help with this, please reach out to us here.

In addition, DailyPay recently hosted a webinar in which we discussed what we are doing as a company to help our remote workforce stay connected and engaged through this unprecedented time. Some of what we are doing may help your company as well.

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What employers and businesses need to know about the recently passed $2 trillion coronavirus stimulus bill

Matthew Kopko, VP of Public Policy at DailyPay summarizes the CARES Act and the impacts it will have on your business and its employees. This on-demand webinar will provide:

  1. Easily understand the specifics about the largest financial relief package ever passed in history
  2. Determine how both small and large employers are able to get loans, and which loans can be forgiven
  3. Be aware of additional provisions on tax credits and paid leave requirements including payroll tax deferral
  4. Take away a solid understanding of how the CARES Act will impact your employees or recently let-go employees directly

NOTE: None of the content on this page or in this video is intended to be legal or tax advice, and should not be relied upon as such. You should consult with your own attorneys, accountants and advisors.

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We’ve summarized some of the video contents below:

Coronavirus Aid, Relief, and Economic Security Act

  • The bill itself is technically called the Coronavirus Aid Relief and Economic Security Act or the CARES Act. It’s also known as HR 748.
  • It’s also called Phase 3 of the coronavirus response legislation (phases 1 and 2 covered immediate government disaster relief and paid leave restrictions)

Coronavirus Aid, Relief, and Economic Security Act: Overview 

  • But first let’s go over the CARES Act. This is the overview of the general sections of the CARES act. Particularly, we’ll be focusing in this segment on Titles I, II, and IV because they include the provisions that are most relevant to employers and contain the marquee programs relevant to the private markets. There are additional sections of the act, for example, Title III, which includes a lot of information on improvements to the health care system in the fight against the coronavirus 
  • And also Title V, which has a coronavirus relief fund, including grants to hospitals, airlines and other types of programs. There are other miscellaneous provisions as well but, again, we’ll be focusing on the loan and other programs that are relevant to employers and workers. 
  • So first let’s get into Title I.

Title I: Keeping American Workers Paid & Employed Act: Overview 

  • Is commonly called the small business loan section. It’s also called the Keeping American Workers Paid and Employed Act 
  • This is the marquee $350 billion loan program and, in general, the goal here is to provide loans to small companies so that they can keep operating and keep their workers on payroll during this crisis. 
  • And to effectuate that, not only is it a favorable government loan, but it is a forgivable loan to the extent you keep your employees hired, or rehire them by June 30th, and use loan proceeds to pay eligible expenses like payroll, rent and utilities. 
  • Another interesting feature of this program is the fact that it’s not issued directly by the government, but instead through a partnership with the private financial markets. So, instead of applying to the Small Business Administration, you would apply to one of many major local banks to be able to get access to this loan program.

Title I: Who is Eligible

  • First let’s talk about who is eligible. Again, this is called the small business loan program, so generally small businesses are eligible. This is defined as businesses that generally employ 500 or fewer employees.
  • One major exception, which impacts a particularly hard-hit segment of the economy during this crisis, are hotels and restaurants and similar businesses who classify themselves under NAICS Code 72. For them, even if they have more than 500 employees, they will still be eligible to the extent that they have no more than 500 employees in any single location.

Title I: Loan Size

  • The general rule of thumb under the small business loan program in Title 1 is that you’re entitled to a loan of approximately 2.5 times your average prior monthly payroll capped, in any event, at $10 million.
  • For most businesses, it’s defined as the average monthly payroll for the 12 months prior to when the loan is made. There are exceptions for seasonal employees or recently created businesses that have different time periods for measuring prior average monthly payroll.

Title I: Borrower Requirements

  • Borrowers requirements are very minimal and there is explicit increased eligibility in the Act itself but borrowers will need to be able to certify in good faith that the loan is needed because of the coronavirus pandemic; that the funds will be used for eligible loan purposes for payroll, mortgages, lease rental payments and utilities; that they do not have any double-dipping applications pending before the government; or that they are not receiving any duplicate payments. 

Title I: Eligible Use of Proceeds

  • If you’re successful in getting a loan, there are only certain types of things that the loan can be used to pay. The most critical item is, of course, payroll costs. 
  • A couple things to note about the payroll cost requirements are that they include all forms of employee compensation, not just wages. So, that would include salaries, commissions, severance, leave or other types of compensation arrangements. But for any individual employee they are capped at $100,000 per year, on a prorated basis. So, that means to the extent you have employees earning more than $100,000 in a given year, you are able to use the proceeds to pay their compensation up to $100,000 and, after that, they would not be an eligible expense with the loan proceeds. 
  • Additionally eligible use of proceeds include certain group benefits like healthcare, interest on any mortgages related to the business, rent payments for your office space or other facilities, utilities, and, also important, interest on any existing debt obligations. 

Title I: Loan Forgiveness/Deferral

  • Most critical to this loan program is the concept of loan forgiveness. In essence, if you are able to manage this loan process effectively, either a large portion or potentially all of the loan you get will be able to be forgiven by the federal government and you will have no liability to repay the loan.
  • Loan forgiveness is provided under the Title I program for eligible costs of payroll, interest on mortgages, rent and utility payments. Again, the restrictions on $100,000 per employee apply, but to the extent you are paying payroll, interest, rent or utilities, and you can document those payments, you are able to get forgiveness to the extent of those payments and potentially get forgiveness of the entire loan. 
  • If you fire people during this process and your average FTEs shrinks during the period you have the loan and afterward, the amount of forgiveness will be reduced relatively to the number of employees you have currently, as opposed to the number of employees that you had right before the pandemic hit. Similarly, to the extent you cut wages of your employees by more than 25%, you also have reduced forgiveness benefit. 
  • The program also includes loan deferral. Applicants are presumed to be entitled to at least a six-month deferral of all payments, fees, principal and interest. That can be expanded up to 12 months, but it’s going to be at the discretion of the Small Business Administration and your lender.

Title I: Documentation for Loan Forgiveness

  • When it comes time to seek the actual loan forgiveness, be sure to keep good records, because your lender and the government will require documentation showing how many employees you have and pay stubs and pay rates to ensure that the payroll payments qualified under the restrictions under the loan program. So, you’ll be able to keep your IRS pay stubs and other type of critical payroll documentation to show payroll payments.
  • Additionally, to the extent there are other qualified expenses, like rent, mortgages or utility payments, you will have to document that as well. On top of all of this, a business executive will have to certify that the documentation is true and correct and not fraudulent, and that the loan was actually used to make eligible expenses such that forgiveness is legitimate.
  • As always, the government provides a provision that allows the government to request any additional information, and this case is no separate. 

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Title II: Relief for Workers Affected by Coronavirus Act

  • Title II is the section that covers individual benefits and business tax relief. As you’ll see in Subsection A and B, these are some of the most well-known programs that have been reported by the press. They include the $1200 and $2400 checks given to individuals and also the unemployment insurance top off.
  • Through the coronavirus stimulus bill, the federal government is expanding unemployment insurance by adding a federal increase of $600 per week on top of state benefits. 
  • Additionally, since most independent contractors and gig workers are typically ineligible for unemployment assistance, this bill allows such contractors to be able to be eligible for assistance through the unemployment insurance provisions of this bill. 
  • In Subsection B, large numbers of Americans will be able to get $1200 checks, per individual, and $500 checks, per child, as critical spending money to get them through this crisis. 
  • To the extent you earn $75,000 or less, you will get the full check and the check will be phased out between $75,000 to $99,000, such that anyone earning more than $100,000 will not be entitled to get any of these payments. 
  • There are also other tax provisions that have been modified through this act that are beneficial to the individual, including educational assistance provisions and relaxation of charitable contribution restrictions. 

Title II, Subsection C: Payroll Tax Credit

  • To the extent you’re impacted by the coronavirus pandemic, you’ll be able to get a credit of the amount of 50% after the first $10,000 per employee for employees that are impacted by the crisis. If you have less than 100 employees, all employees will be eligible, but if you have more than 100 employees, only employees that are being paid but are unable to work, will be eligible for this type of credit. 
  • To ensure against double dipping to the extent you take advantage of the forgivable Title I loan program, you will not be eligible for these tax credits. 

Title II, Subsection C: Payroll Tax Deferral 

  • The bill also includes a payroll tax deferral for the tax year 2020. To the extent you’re an employer and paying payroll taxes, you will have no tax liability for payroll taxes in the year 2020, and they will instead be paid in 2021 and 2022. That means that 50% of the payroll tax obligation, instead of being due for the tax year 2020, will be due in 2021, and the other 50% will be due in 2022. 

Title II, Subsection C: Other Provisions

  • There are also other tax provisions that have been modified under this Title II of the stimulus bill and they include suspension of loss limitations for the Tax Cut and Jobs Act, which will impact your net operating loss provisions and mechanisms, and also a change to the corporate AMT. 
  • There are also other technical changes, but they are not the subject of this summary 

Title IV Coronavirus Economic Stabilization Act of 2020

  • In addition to the $350 billion small business loan program, there is a $500 billion loan program intended for larger employers. About $50 billion of that loan program is specifically earmarked for airlines, cargo carriers and national security-sensitive companies, or more commonly thought of as the Boeing exemption. 
  • The other $450 billion of the loan program is available generally to larger businesses.
  • This is administered by the Treasury Secretary in coordination with the Federal Reserve and there is no loan forgiveness. 
  • Eligible borrowers under the large loan facility will be typically U.S.-domiciled companies with employees that are principally based in the United States.
  • The loan term will be not more than five years and there are very favorable interest rates at which you’ll be able to get the loan. For the special industry loans, that is national security and airlines, the government will also require warrants to be issued in the government’s name.

Title IV: Restrictions for Borrowers

  • There are lots of restrictions that come along with taking advantage of this loan program. 
  • Firstly, you’re not able to issue dividends or stock buybacks or other capital distributions for the duration of the loan and for a full year after.
  • Secondly, you’re going to be obligated to maintain at least 90% of your existing work base as, again, the main purpose of this entire program is to ensure that workers are not fired during this crisis. 
  • You’re also not allowed to transfer proceeds of the loan to any offshore affiliate, and there are limitations on compensation for high-paid employees and very high-paid employees. 
  • There are even further restrictions to the extent you’re taking advantage of the very low interest rate loans. In addition to having to maintain 90% of your workforce you’ll have to agree to commit no outsourcing, not just for the term of the loan but for two years after, and then, importantly, you’re not allowed to abrogate any labor agreements and to the extent any labor dispute or unionization efforts spring up, you will have to maintain neutral, not just for the period of the loan but again for two years thereafter. 

Title IV: Additional Airline & Banking Provisions

  • There are special provisions that we won’t cover in detail that cover specifically the airlines and banks. 
  • Airlines, for example, are required to maintain air service in smaller communities and healthcare supply chains. 
  • There are a variety of changes to bank rules that allow for flexibility during this crisis. 

Title IV: Consumer Forbearance

  • Title IV also includes very important and valuable consumer forbearance rules. 
  • For customers of banks who receive loan modifications or forbearance, they will not get adverse credit reporting.
  • There is also a foreclosure moratorium and forbearance on individual mortgages, which is not forgiveness of mortgage payments, but it is forbearance, and there are more restrictive and smaller forbearance for multifamily properties. 
  • There is a 120-day moratorium on evictions, so that people who are behind on rent payments are not going to be kicked out of their apartments during this crisis. 

Phase II Bill: Coronavirus Paid Leave Requirements

  • We’d also like to touch briefly on the paid leave requirements passed under the previous phase of the legislation also called Phase II.
  • This was technically called the Families First Coronavirus Response Act and was passed several weeks ago and is becoming effective, April 1, 2020. 
  • It generally has two paid leave requirements: 1) Emergency paid sick leave and 2) Emergency Family and Medical Leave Act expansion. 
  • We’ll also be covering in this section one example of state laws – New York, though state reactions to the crisis vary and obligations for leave vary by state. 

Coronavirus Paid Leave Requirements: Emergency Paid Sick Leave

  • Emergency paid sick leave covers employers with fewer than 500 employees, who have employees who are not able to work, and who are meeting one of the six technical coronavirus-related criteria, for example, if you have to take care of your children because school closings or childcare closings have occurred.
  • The paid sick leave is limited to 80 hours of paid sick leave per full-time employee and for part-timers based on recent work. So 80 hours or the equivalent of two weeks. 
  • For those directly quarantined by COVID-19, their regular required rate of up to $511 per day will have to be covered. 
  • For other people in different categories, a smaller amount, up to $200 per day, will have to be covered. And although it is controversial, healthcare employers are generally exempted from this requirement due to the work requirements in healthcare facilities at this time.

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Coronavirus Paid Leave Requirements: Family Medical Leave Act

  • Family Medical Leave Act Expansion generally covers employers with fewer than 500 employees and for those employees who are not able to work and who now qualify for the Family Medical Leave Act, having to care for their children because they’re out of school. 
  • Employees can be eligible for up to 10 weeks of Family Medical Leave following the first 10-day leave period provided for in the previous slide. 
  • The required amount to be paid under this part of the bill is generally 2/3 of the regular pay rate up to $200 a day and $10,000 in the aggregate. 
  • And again, healthcare employers are generally exempted from this requirement. 

Coronavirus Paid Sick Leave Requirements in New York 

  • New York also passed its own leave modification requirements in the middle of March. 
  • It covers almost all New York employers, but those who are subject to a mandatory or precautionary order of quarantine who cannot work. 
  • New York employers with more than 99 employees must pay 14 days of paid leave to covered workers. 
  • Smaller employers have to cover 5 days of paid leave at a regular pay rate.

Key Takeaways 

  • Small and some not so small businesses can now get multi-million dollar loans from the federal government and potentially some, or all, of those loans can be forgiven. 
  • Large employers are also able to get loans, but they must maintain their workforce and there is no forgiveness. 
  • There are a variety of tax credits as well and a payroll tax deferral for employers. 
  • This bill also includes the well-known stimulus check provisions that provide direct checks to individuals and substantial grant programs for hospital, airlines and other industries. 

About DailyPay

  • DailyPay is a major way to preserve employee financial health and wellness in the long and short term. 
  • By providing our on-demand pay benefit, partners across the country have been supporting their employee financial wellness and increasing retention of their employees. 
  • Employers across the economy love being able to provide their employees the benefit to be paid daily instead of once or twice a month when it’s convenient for their employer.

If you’d like to be able to offer DailyPay to your employees, and take advantage of all the fee waivers and other benefits we are offering to workers during this crisis, please reach out to our team. We’d love to work with you and we’d love to bring you and your employees into the DailyPayNation. Thank you very much.

COVID-19 Notice: DailyPay has waived all next-day transfer fees so that employees can access their earned and unpaid earnings when they need it, until further notice. We are committed to getting your company up and running as quickly as you’re willing to move, so reach out to our team at joinus@dailypay.com today.

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Responding to the New Normal — WFH Culture

DailyPay is a company that works with employers all across America to enable their employees to access their pay whenever they want, without having to wait for payday. Our mission is to create a powerful employee experience with pay.

Many companies have an external mission that is amazing, but the internal culture is very different. Not at DailyPay! Our Founder and CEO, Jason Lee, is committed to ensuring that we live the experience we sell. That became very apparent when the COVID-19 crisis hit. 

A week ago, our CEO called a leadership meeting to discuss what was about to be our new normal — the need for our staff to work from home, for their safety, without letting our service slip at all. 

We took proactive measures to implement a 25% work from home test as part of our Business Continuity Plan. During this test, a few guidelines were put into place to ensure a positive experience: 

  • We designated a Head of Employee Experience to ensure we kept our employees needs top of mind
  • Every employee was assigned a virtual phone number that also supported video
  • Employees working from home still received our current $17 lunch stipend/Seamless.com delivery

  • Any equipment needed for a home office was supplied
  • All in-person meetings were shifted to ensure virtual access
  • Every employee was offered DailyPay for DailyPay in case people needed early access to their earned income

When DailyPay needed to shift to a 100% work-from-home schedule, all of these perks stayed in place and we added many more: 

  • Deliverables became due on dates, not times, to accommodate for the need to work odd hours, while simultaneously managing remote schooling and other efforts.
  • Daily video check-ins were set up for 12:30 every day to keep an in-person company culture. During these meetings, we play games, create video tours of our homes, hold St. Patrick’s day spirit competitions, and have virtual watercooler conversations. 
  • We hired a virtual personal trainer to provide both fitness tips and nutritional advice.
  • Many senior execs send video updates and emails throughout the day.
  • Our many, many slack channels allow every employee to “eavesdrop” on what is happening with other groups, our client partners and more.

As we began to navigate this uncharted territory, we vowed to over-communicate and overcompensate. This is a challenging time, but one that is truly strengthening our sense of community. We will continue to monitor the individual and collective needs of our workforce throughout this process.

“The financial health of every working American is the reason we come to work every day,” said Jason Lee, CEO of DailyPay, “I strive to ensure that our operations remain 100% solid during this time of crisis, and that every DailyPay employee is capable of delivering 100% of their attention to our client partners, without interruption or fail during this time. Our team has done an exceptional job in creating a communicative and positive environment, so we can all work together and create success.”

“The truth about the strength of a brand is often exposed during the most challenging of times,” said Jeanniey Mullen, Chief Innovation and Marketing Officer of DailyPay. “DailyPay is a powerful example of what every brand should aspire to achieve. Authentic, inspirational and relatable methods, communications and employee engagement, even though our individual employees have never been physically father apart from each other, or our client partners. As we all continue to find our way through this pandemic, I am confident that the DailyPay team will emerge as a guiding light with positive impact on the future.”

“At DailyPay, we are dedicated to placing an enhanced focus on our employees’ day-to-day experiences,” said Taylor Paone, Employee Experience and Culture Manager at DailyPay. “It is my top priority to anticipate the needs of our workforce and ensure that they are having a great experience. As I walk around the office and see each of their faces, I’m able to address those needs in real time, but when we moved to virtual, I challenged myself to make it even better. We are working that much harder to make sure we strengthen our sense of community by creating a positive and enjoyable virtual environment.”

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DailyPay on Workforce Activity Impact During COVID-19 Crisis

by Alexey Nefedov, PhD, Lead Data Scientist, DailyPay 

UPDATE April 27, 2020

Here’s the latest update on the latest DailyPay Workforce Index statistics: We are seeing a decline in the number of working employees for Call Centers and HospitalsFor QSR, we are seeing signs of a slight increase in the number of working employees.For Supermarkets, numbers for this week look pretty similar to the previous week.On April 22, 11% of all advances that indicated a specified reason were related to COVID-19.

We’d also like to report results from a recent DailyPay survey that indicated that 16% of all respondents applied to their current jobs because they offer DailyPay. Over half of those respondents work in the on-demand space for companies like BiteSquad, EatStreet, Waitr and G4S with the remainder primarily working in health care or home care.

UPDATE April 16, 2020

Here’s the latest update on the latest DailyPay Workforce Index statistics:This week, three industries — Call Centers, Hospitals and Supermarkets — continued to show a decline in the number of working employees.
On April 15, 13% of all advances that indicated a specified reason were still related to COVID-19 crisis.

UPDATE April 6, 2020

We want to provide you with an update on the latest DailyPay Workforce Index statistics: During the past week (Mar 29 – Apr 4), all four industries — Call Centers, Hospitals, QSR and Supermarkets — continued to show declining numbers of working employees.
Call centers showed the strongest, double-digit decline. They were followed by Hospitals, Supermarkets and QSR, which showed weaker, single-digit declining trends.
On April 3, 13% of all advances that indicated a specified reason were related to COVID-19 crisis.

All four industries are showing declines in working employees, due to reasons likely to be caused by direct and indirect impact of coronavirus (layoffs, restructuring, quarantine, sickness and anxiety). While it seems to be counterintuitive that the number of working healthcare employees is declining, we are speculating that many healthcare workers who are not actively engaged in the treatment of COVID-19 patients are asked to stay at home.

Every employer in the United States is taking drastic action when it comes to safeguarding the health and well-being of their employees and their families as we work through the COVID-19 pandemic. We see that this is starting to have a dramatic impact on millions of people in the workforce, especially the hourly worker. I have picked DailyPay partners from four industries — Hospitals, Call Centers, Supermarkets and QSR — as a starting point to determine if there are changes in the hours worked by employees, the number of employees working, and the reasons why these employees are accessing their earned income before their company’s scheduled payday. I want to share some insights with you so you can get a better understanding of the impact this is having on all of us.

Looking at these four industries and DailyPay usage reasons, we are starting to see various changes that differ greatly by industry. We’ve summarized our observations below (fully anonymized), as well as in a report of more detailed industry trends. We expect to refresh this data periodically.

  • This week, all four industries — Call Centers, Hospitals, QSR and Supermarkets — showed double digit decline in the number of working employees in comparison with the previous week
  • Additionally, QSR and Supermarkets continued to show decreasing average hours worked by employees
  • On March 26, 16% of all made advances with specified reason were related to COVID-19 crisis.

To support the ability for all working Americans to have access to funds they need, when they need it, on March 17th, DailyPay announced that we would waive early access fees. We encourage all employers to take actions like these to enable employees to have access to their earned income as it is needed. After all, the shelves at the grocery stores don’t wait for payday.

To help our partners and all employers, we’re hosting a webinar titled, “Supporting Your Workforce’s Financial Security Through the COVID-19 Crisis” on Tuesday, March 24th. We’re in active discussions with the APA and HR associations regarding ways to support all employers and employees through this. We are all in this together. Let’s do something positive for everyone.

Stay safe and healthy. Thank you — Alexey

nefedov

          Alexey Nefedov

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Measuring the Growing Demand for the Daily Pay Benefit

Results from a recent Harris Poll show that 72% of responding employees want access to their pay on-demand, while only 6% actually have this access. That 66% gap means the daily pay benefit is on a high-growth curve.

It also means many, many employees are still missing out on this key component of financial stability and wellness, and employers are scrambling to resolve this by partnering with DailyPay.

During our exclusive podcast, The Source by DailyPay, with guest Joyce Maroney, the founder and executive director of The Workforce Institute at Kronos, Inc., we delved into several key issues that the Harris Poll, which was commissioned by the institute, uncovered.

The key statistic in the “Death of the Traditional Paycheck” survey was that nearly three-quarters of the 1,180 adult employees who answered the survey desire to access pay on-demand. Breaking that down by income level, while we expected that nine out of 10 responding workers who earn less than $50,000 a year wanted to have access to their pay daily, it was a bit surprising that more than two-thirds (67%) of those responding making $50,000 or more, also want that ability.

“Although the macro-economy may be booming, plenty of Americans struggle to pay their bills,” Maroney said during the February 12th podcast.

The struggle is so real that the survey results show that 8% of respondents “would consider a $50 fee reasonable to access $50 of their earned wages early – which could signal a desperation among some for safe and reliable access to their own money as an alternative to short-term payday loans,” Maroney said.

This shows how some living pay-to-pay have been conditioned to expect such a fee for getting their own earnings! It’s good that DailyPay has a very reasonable ATM-like maximum fee of $2.99 for almost instant access to earned pay. And that’s it.

Another key statistic from the Workforce Institute data was that 51% of respondents would value having access to their pay on-demand more than additional paid time off! Accounting for more paid time off is extremely costly, but employers can pay nothing or near nothing when partnering with DailyPay to provide employees access to their earned pay.

As for financial wellness, Maroney noted that “three-quarters of employees say they would prefer to work for an employer that offers financial planning, budgeting and automated savings tools over one that does not, including 88% of 35 to 44-year-olds.”

As more employers seek to provide these benefits, one potential barrier to adoption lies in the payroll function, according to Maroney. “Those responsible for payroll operations are reluctant to mess with a solution that’s currently working for their employees,” she said. “Payroll is a delicate balance of process, technology, compliance concerns and employee expectations.” We couldn’t agree more.

Fortunately, employer partners with DailyPay’s solution do not need to adjust normal payroll runs—there is an information interface only and that is separate from the payroll processing that needs to be done. At DailyPay we work hard to ensure employers can continue to run payroll as if there is no daily pay benefit. In fact, they likely will not know an employee has made a draw prior to payday.

DailyPay provides solutions that empower employees to control the timing of their pay and ways they use their earned income, not only to pay unexpected bills, but also to save money early, or invest it, or even use features of the app to rebuild their credit score and more.

Finally, “in a supply-side labor market, employers are looking for ways to enhance the employee experience that will give them an edge,” Maroney said.

As employers embrace implementing employee experience programs to facilitate high engagement from staff, daily pay is an important component of that experience.

Employees also are embracing the ability to see what they have earned throughout the pay cycle, regardless of whether they want to take a draw prior to payday. It’s difficult to manually figure net pay on the fly, but now people can get a good idea of what they have earned simply by accessing the dailypay app, for free.

That knowledge is power.

In addition, employers are noticing fewer missed punches on the timeclock because people want to have a good, ongoing record of what they are earning as they go, even if they do not want or need to transfer any of their earned pay early.

So, is the demise of the paycheck real and happening now? Well, the idea of a fixed payday is breaking down, but in the end, the future will not be void of paydays, but rather full of them.

Additional Resources:

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How Payday Lenders Masquerade as On-Demand Pay Providers

The results are in: a 2020 poll conducted by Morning Consult and commissioned by the Center for Responsible Lending, a nonprofit aimed at protecting consumers, found that 70% of registered voters approve of limiting interest rates on consumer loans to 36%¹. The poll found that not only does this measure have bipartisan support, but survey respondents also indicated that they favor the IRS more than payday lenders. Ouch!

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5 Reasons to Use DailyPay Instead of Borrowing From Your 401(k)

While taking money out of your 401(k) may seem like an easy option during a time of financial need, the repercussions of that decision could be devastating to your financial future. What may seem like a “quick fix” in the moment can cause ripple effects of damage for years to come. There are many reasons why utilizing a daily pay benefit is a much safer and more sustainable option. A few of the biggest reasons are outlined below:

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How Subscription Services are Quietly Destroying Financial Wellness

Recently, I checked my credit card bill and found that I had been paying a $19 a month subscription to DuoLingo for Spanish lessons. I flashed back to a moment 2 years ago where I thought I should really learn more fluent Spanish. I had completely forgotten I subscribed and realized I had just paid close to $500 for something I never used.  It was at that point that I went on a subscription service witch hunt. 

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