Wouldn’t it be freeing to get paid right after you’ve worked instead of waiting for payday? Or if an employer, have you ever considered how appreciative your employees would be if you offered a solution enabling them to get a portion of their pay immediately after a workday?
Earned wage access (EWA), is a payroll benefit enabling workers to do just that – get paid when needed. Let’s take a look at how EWA works and why employees are increasingly asking for it as a part of their benefits package.
Money-related stress is real for most
Nearly three-quarters (74%) of employed Americans live paycheck to paycheck. Even households bringing in $100K-$150K struggle to make ends meet. Knowing this, it’s no surprise one-fourth of non-retired adults have no savings.
And with elevated inflation, rising food prices and the increasing cost to do about everything, millions live with financial stress. Maybe you are one of them.
According to the American Payroll Association, almost one in five households claim their expenses regularly exceed their income, while two-fifths worry about difficulties paying their bills. Rather than being financially healthy, they are financially unwell.
Earned wage access can help you take a step toward financial wellness. Say, for example, your electricity bill is due Friday, but you don’t get paid until the following Wednesday. With EWA, you can tap into the wages you’ve already earned to pay this bill on time, so you don’t accrue late fees or go through the stress that comes from falling behind.
EWA also helps people avoid relying on high-interest credit cards, over drafting their bank accounts or taking out a predatory payday loan. Regarding the latter, the Better Business Bureau recently reported consumers have lost millions to payday-lender scams since 2019, with the median amount lost per person $1,000 in 2022. Talk about financial stress.
Financial freedom more attainable through EWA
EWA helps you avoid such scenarios and gives peace of mind knowing your money is there when you need it most.
Here’s how QRails’ AnyDay EWA solution works:
- Once your employer offers it, sign up for and download the AnyDay app.
- Tap “Request Pay” to see how much of your available wages you can get from your current earnings.
- Type in the amount you want, send money, view transactions, use the budgeting tool and even earn and get rewards.
- Alternately, you can choose to get paid through the AnyDay Pay Card, which comes pre-loaded with your pay and works just like a debit or credit card.
What makes AnyDay different from many other EWA providers? It’s free for employers to offer and low-to-no cost for employees to use. There are no hidden fees.
Get closer to being financially healthy, wealthy and wise
According to the Financial Health Network, just 34% of Americans are financially healthy. Financial health, according to the group, considers whether people are “spending, saving, borrowing, and planning in a way that will either contribute to, or detract from, their resilience in the face of unexpected events and ability to thrive in the long term.”
The AnyDay app allows you to track your spending habits and budget better – perhaps you overspend and under-save. The app helps you see patterns. It also comes with a library of articles aimed at helping users become more financially savvy, such as how to set up a budget, tips for getting out of debt or learning to live within your means.
Most people spend a lifetime creating good or bad spending habits that they repeat. By brushing up on your financial literacy through the AnyDay app, you’re likelier to turn poor spending patterns around – and make decisions that are more financially sound.
Get in touch today at sales@qrails.com