EARNED WAGE ACCESS
Earned wage access (EWA) also known as Early Wage Access or On-Demand Pay is gaining increasing popularity. The concept is simple, Earned Wage Access is the ability for an employee to access the money they’ve earned before their scheduled payday.
Interest in this benefit has spread beyond those involved in the gig economy, or those employees who rely on tips, to employers and employees in “traditional” businesses.
How Does Earned Wage Access Work?
Employees who sign up for an EWA program can request funds from their next paycheck based on hours already earned. The EWA vendor sends a payroll deduction file to employers and the deductions are processed within the same pay cycle. Payments will be deducted from employees’ next paycheck.