The COVID-19 pandemic has evolved rapidly, with each day bringing an onslaught of news reports covering the spread of the novel coronavirus, promising new treatments or providing updates on how long social distancing measures will stay in place. The coronavirus crisis has spurred a global lockdown, and we have had to adjust our entire lives accordingly.
This is a rapidly evolving situation — one that has demanded flexibility from all of us, especially when it comes to pay.
One example? The government’s recent mandate requiring employers to halt wage garnishments for student loan debt. This means that the net pay for many workers will increase. And for some, this could be pretty dramatic, potentially even impacting an employee’s eligibility for on-demand pay programs. As payroll teams (who are already overstretched due to this crisis) are forced to quickly adapt, DailyPay, the leading provider of the daily pay benefit, is capable of changing with you.
A Closer Look: The Power of DIA During COVID-19
One of DailyPay’s core differentiating features in the on-demand pay space is our Dynamic Income Algorithm (DIA). DIA creates a personalized profile for every DailyPay user, which accounts for differences in their net pay profile. This profile informs what we call the “advance rate” (or net-to-gross pay ratio). DailyPay is unique in that we are the only vendor that creates this personalized profile for each employee.
During a time when payroll teams are already overworked, DIA helps to lighten their load. Because DIA is dynamic, it automatically adjusts to this change and is able to increase the amounts available to affected workers, resulting in more take-home money to provide for themselves and their families during this crisis.
The DailyPay advance rate is dynamic, meaning that as the pay profile of an employee changes, the advance rate will change to accurately reflect the net pay owed to the employee.
This enables the user to enjoy continuous, full access to the product, even if they have a non-standard pay profile (e.g., garnishments, benefits in arrears). The dynamic advance rate accounts for these unique employee particulars by adjusting the amount made available to the employee in the Pay Balance, such that the amount made available to the employee will be net of these adjustments.
Want to learn more? Schedule a demo!
To face a crisis such as this, the importance of quickly responding to change is of paramount importance. Individuals, organizations and technology have had to quickly adapt in order to strike the right balance between slowing the spread and working to maintain some sort of normalcy (healthcare workers, grocery store employees and pharmacy workers — we salute you). DailyPay is proud to provide a pay experience solution to help companies and their employees during this difficult time.
When selecting an on-demand pay provider, it’s important to choose a vendor with the experience and ability to serve you and your employees in any situation. To learn more about DailyPay and how our robust pay experience can benefit your company, click here.