On-Demand Pay with Clair

On-Demand Pay is a new financial benefit that allows employees to access a portion of their earned but unpaid wages between pay cycles, often for emergencies or unexpected expenses. 

There is a growing demand for flexible pay—as employees navigate increased costs of living—and it’s a great alternative to predatory options like high-interest credit cards, payday loans, or overdrafts.

Gusto partnered with Clair,1 a financial services company, to offer On-Demand Pay—a free benefit that allows employees to access a portion of their earnings early without any effort required from employers. On-Demand Pay is available to employees with a Gusto Spending account and managed entirely through the Gusto mobile app for a seamless experience. 

How it works

Once an employee signs up, here’s how advances and repayments work: 

  1. Eligible employees can request up to $200 of their earned wages between pay cycles through Clair’s placement in the Gusto mobile app. There are no credit checks, interest, or required fees.
  2. Advances are deposited into an employee’s Gusto Spending account2 within 2-4 business days at no cost, or instantly for a $4.50 fee.3
  3. Repayments are managed by Clair and are automatically scheduled for the employee’s next payday.

Employers can continue to run payroll as normal and there are no adjustments needed if the employee chooses to use On-Demand Pay. 

On-Demand Payment tiers

Eligible employees can request up to $200 depending on the following On-Demand Payment tiers:

  • Core: Employees can request up to $100
    • Requires a Gusto Spending account
  • Plus: Employees can request up to $150
    • Requires direct deposit to their Gusto Spending account
  • Premium: Employees can request up to $200
    • Requires Gusto Wallet Premium4 ($500+ in direct deposits to their Gusto Spending account)

Why should employers provide this?

Everyone gets hit with unexpected expenses, and 86% of Americans5 report feeling financially stressed. By offering On-Demand Pay, you can give your employees access to their pay early without any admin costs or changes to payroll. In turn, you can attract and retain engaged talent with a unique and easy-to-use benefit that’s in high demand. 

You have complete control over your account, so if this benefit is not right for your employees, you can choose to opt out through the Benefits tab.

Eligibility

There are requirements for both the employer and employees in order to use On-Demand Pay. 

For employers to offer On-Demand Pay to employees, the requirements are based on many internal risk factors, including:

  • Approved for 2-day payroll
  • Consistently run on-time payroll
  • Proactively report terminations

For employees to use On-Demand Pay, the requirements include:

Additional qualifications apply.

Employees: Sign up for On-Demand Pay with Clair 

With Gusto and Clair On-Demand Pay, you can get on-demand access to a portion of your earnings as soon as you clock out of work. You can take control of when you access your earnings to either spend or save.

Clair On-Demand Pay advances have 0% interest and no finance charges. 

As a Gusto Wallet Premium user, here’s how to enable Clair through your Gusto mobile app to access up to $200 of your earned wages, early.

  1. Open your Gusto mobile app.
  2. In the “On Demand Pay” tile, choose Learn more.
  3. Review the information and select Next.
  4. Choose Let’s do it! 
  5. Check the boxes to agree to the terms and select Next.
    • If Clair is able to open an account based on your information, you will immediately see the option to Request an advance on your next paycheck.
    • If you have any questions about your eligibility, contact Clair directly.

Once you are approved for On-Demand Pay, a new direct deposit account is created for you in your payment methods. This account allows you to access up to $200 of your pay before your pay date.

Request an advance

Once you connect Clair to your Gusto mobile app by following the steps above, follow the steps below to request an advance. 

  1. Open your Gusto mobile app.
  2. Tap the On-Demand Pay tile. 
  3. Choose Request an advance.
  4. Enter the amount you’d like to advance and choose Next.
  5. Review your advance details and check the box to agree to the terms.
  6. Choose Confirm advance.
  7. Choose when you would like the funds to arrive in your bank account:
    • Instant Transfer: Funds will arrive instantly (or within 30 minutes), for a $4.50 flat fee.
    • Standard Transfer: Funds will arrive in 2-4 business days, for no fee.
  8. Choose Confirm.

Once your advance arrives, the amount borrowed will be available in your Gusto Spending account.

Repaying the advance 

The borrowed amount is automatically deducted from your next paycheck through Gusto. You may also choose to repay an advance early. For more information on how to repay the advance, please reach out directly to our partner, Clair.

Ongoing eligibility

Once you’re approved for On-Demand Pay, you can have ongoing access as long as you meet the following requirements:  

  • Employment with an employer that uses Gusto for payroll processing
  • A Gusto Wallet Premium Spending Account
  • Repayment of any outstanding advances obtained through Clair

1 Clair is a financial technology company, not a bank. All Advances are originated by Pathward®, N.A. All Advances are subject to eligibility criteria and application review. Terms and conditions apply.

2  The Gusto Spending account is issued by nbkc bank, Member FDIC. Gusto is a payroll services company, not a bank. Banking services provided by nbkc bank, Member FDIC.

3 If an employee chooses to have their Advance disbursed to their Gusto Spending account instantly, they will be charged a $4.50 fee. This instant transfer fee will be charged to their Gusto Spending account at the time of disbursement. Instant Transfers typically occur in seconds, but may take up to 30 minutes.

4 Access to Gusto Wallet Premium pricing and features is subject to certain direct deposit eligibility requirements. Go here for more details.

5 Source.