Human Resources & Payroll Blog

What is Early Wage Access, Anyway?

Apr 13, 2021 8:00:00 AM / byAnastasia Parris


Because these programs simply provide access to money that the user has technically already earned, the money accessed is not a loan. There is no interest. Early wage access companies typically charge a small fee (a few dollars) for each early withdrawal. That money is the provider’s profit—and is much less significant than payday loan interest or the overdraft and late fees that workers might incur without this service.

Types of Early Wage Access Programs


  • Direct-to-consumer:在此模型中,雇主与早期工资访问程序无关。这些程序更像贷款。APP或计划向员工提供资金,员工在发薪日的银行账户中支付。
  • Self-hosted daily pay:In this model, the company has its own manual system where employees are paid daily. This requires a lot more work for the employer and may result in confusion in regard to taxes and other garnishments.
  • Self-hosted advances:在这一模型中,每当员工需要帮助时,该公司履行工资进步请求。这可以是行政噩梦,特别是对于小型工资团队而言。此外,可能有文书工作,以确保员工在收到预付款后重返工作岗位。
  • Employer benefit:在此模型中,早期工资访问程序连接到雇主的工资单和计时系统,以使员工能够获得薪酬进展。Rain’scapital is used to advance the money, and the employer reimbursesRainon payday. The employer releases the same amount of money on payday that it would if it didn’t have the program, and there are no additional costs for the company. There is much less of a lift for both employers and employees with this model, and no one has to think twice about where the money is coming from. Employees don’t have to worry about having money in their accounts to reimburse the on-demand pay vendor, and their money is safe.


When offered as part of a benefits package, on-demand pay can prove to be a useful tool for employee retention and productivity and can result in more job applicants. Even employees who don’t need an early wage access service might see the value in it and take comfort in the fact that their employer is offering such a useful benefit.

Anyone, at any time, can end up in a financially unstable position due to unplanned expenses or accidents. If that happens, it’s important for the person to have faith in their employer and the motivation to keep showing up to work. The ability to get paid almost immediately after a shift can make a huge difference for someone going through a financial crisis. Life doesn’t wait two weeks for payday.


  1. Is early wage access a loan?

By legal definition, Rain is not a lender. They only provide money that has already been earned. Technically, it’s not an advance, either. You can’t request funds from Rain for work that you plan on doing tomorrow. All Rain does is allow people to get paid sooner without causing an administrative hassle for the employer.

  1. Are people paying to get paid?

One of the objections surrounding early wage access is, “I don’t want my employees to have to pay to get paid.”

Rain is a completely voluntary benefit. Your employees can choose whether or not to sign up. Even after they sign up, they do not have to use Rain.


  1. How much work is required to use it?


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