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 advance a portion of their paycheck without any effort required from employers. On-Demand Pay is available to employees with Gusto Wallet Premium2 and managed entirely through the Gusto Wallet app for a seamless experience.
Once an employee signs up, here’s how advances and repayments work:
Employers can continue to run payroll as normal and there are no adjustments needed if the employee chooses to use On-Demand Pay.
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.
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:
For employees to use On-Demand Pay, the requirements include:
Additional qualifications apply.
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 Wallet to access up to $200 of your earned wages, early.
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.
Once you connect Clair to your Gusto Wallet app by following the steps above, follow the steps below to request an advance.
Only one advance is allowed at any one time per user. Once the borrowed amount is paid back, you can become eligible for another advance within the same pay period.
Once your advance arrives, the amount borrowed will be available in your Gusto Spending account.
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.
Once you’re approved for On-Demand Pay, you can have ongoing access as long as you meet the following requirements:
Employees: Follow the steps below to change the amount of your advance.
Contact Clair at [email protected].
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 Access to Gusto Wallet Premium pricing and features is subject to certain direct deposit eligibility requirements. Go here for more details.
3 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.
4 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.
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