With Cashout,1 employees can request a portion of their estimated paycheck before payday. Then, the Cashout loan is automatically repaid through their regular direct deposit paycheck.
First-time Cashout users can request up to 40% of their estimated accrued net wages, up to $200. Once they repay their first Cashout loan, they become eligible to request 40% of their estimated accrued net wages, up to $500. Employees can request up to two Cashouts per calendar month. Any outstanding Cashout balance must be repaid in full before an employee can request a new Cashout.
Like other financial products, employees need to meet eligibility criteria in order to use Cashout. For compliance reasons, employee Cashout eligibility and activity is not shared with employers.4
Qualification for Cashout is based on both employer and employee eligibility. Once an employer becomes eligible and Cashout is activated for the company, employees are screened for eligibility.
Employer eligibility for Cashout
Some examples of criteria for employer eligibility include:
Employee eligibility for Cashout
Gusto evaluates employees on an individual basis for eligibility. A few examples of employee eligibility criteria:
Please note: this is not an exhaustive list of employer and employee eligibility criteria. Gusto may use additional factors to evaluate eligibility for Cashout.
For privacy and regulatory reasons, information about an employee’s Cashout eligibility or Cashout history can only be discussed with that employee and cannot be discussed with administrators, employers, or managers within a company.
Gusto Cashout was built to work directly with the Gusto spending account, so Cashout loans deposited to a Gusto spending account are completely free.2 Employees with an active Gusto spending account and debit card can access Cashout at no cost.
Employees who request to have a Cashout deposited to an external bank account will pay a small fee.2 Depending on the loan amount and loan duration, the fee will either be $5 or 36% APR of the loan amount, whichever fee amount is lower. The fee amount is calculated and communicated to the employee before submitting a Cashout request, so the employee can determine if they’d like to proceed with the request and associated fee.
For employers, Cashout is offered at no cost. Employers don’t have to worry about funding or facilitating any aspect of Cashout—just run payroll as usual.
An employee’s available Cashout amount is calculated using several criteria, including:
Since the criteria depend on pay periods and payroll statuses, employees may see their available amount change day-to-day.
Cashout funds deposited to a Gusto spending account are available within a few minutes after the loan is requested.
Cashout funds deposited to an external bank account can take 1-3 business days to be made available.
Employees can review Cashout history in the Cashout section of either the Wallet dashboard or the Gusto Wallet mobile app.
Cashouts are short-term loans requested by an employee and serviced by Gusto. Cashouts are intended to be repaid through the employee’s regular, direct deposit paycheck.
As an alternative to payroll repayment, employees have the option to schedule repayment for a Cashout balance using the online payment portal in their Wallet dashboard or the Gusto Wallet mobile app. The online payment portal gives employees the ability to repay a Cashout loan before the due date, schedule a payment plan that works for them, and more.
Although Cashouts are designed to be repaid through payroll, there are times in which a Cashout repayment may not be collected as expected through an employee’s direct deposit on the expected due date. If this happens, Gusto will automatically attempt to collect the outstanding balance from any direct deposit paycheck that’s paid out in the 16 days following the original due date.
If a past due loan isn’t repaid within 16 days of the original due date, the employee will be unenrolled from Cashout and Gusto will work with the employee directly to collect the outstanding Cashout balance.
Eligible Cashout employees can be unenrolled and/or permanently disqualified from the Cashout program. Below are some reasons that could cause unenrollment or permanent disqualification.
This is not an exhaustive list of unenrollment and disqualification criteria, as Gusto may use additional factors to evaluate disqualification for Cashout.
For privacy and regulatory reasons, information about an employee’s Cashout status can only be discussed with that individual and cannot be discussed with administrators, employers, or managers within a company.
Cashout can be managed on-the-go from the Gusto Wallet mobile app, available in the App Store® and Google Play® store.5 Employees can request a Cashout, review their Cashout history, schedule a payment, review paystubs, and more.
1. The Cashout program is issued by Sunrise Banks, N.A., Member FDIC.
2. The Gusto Cash Account, savings goals, spending account, and debit card are issued by nbkc bank, Member FDIC. There are no fees associated with Cashout to a Gusto spending account. The Gusto spending account may have fees such as out-of-network ATM fees. Please review the terms and conditions carefully. Cashout to an external bank account has fees up to $5 per transaction, but may be less depending on your loan. Fees are either $5 or 36% APR of the loan amount, whichever is lower, and does not vary across the loan term. Generally, Cashout funds are available to Gusto Spending Account users within a few minutes. Whereas, Cashout funds to an external account can take between 1-3 business days to be made available..
3. Cashout fees are up to $5 per transaction, but may be less depending on your loan. Fees are either $5 or 36% Annual Percentage Rate (APR) of the loan amount, whichever is lower, and does not vary across the loan term. So for example, an employee that has a $500 loan with 7 days until payday would pay 36% APR of the loan amount ($3.45) since that is smaller than $5. In this scenario the total repayment amount would be $503.45. An employee that has a $500 loan with 14 days until payday would pay a $5 fee (26.07% APR) since that is smaller than 36% APR of the loan amount ($6.90). The total repayment amount would be $505
6. Gusto’s partner bank Sunrise Banks N.A., Member FDIC, who issues Gusto’s Cashout program, reserves the right to disqualify individual employees or employers at their discretion.