There are numerous benefits to earning an income through an earned wage access (EWA) program. Over 50 percent of Americans live paycheck to paycheck, and this stress can have a negative impact on work relationships, including those with colleagues, customers, and employers. EWA allows employees to access part of their income to alleviate this stress, which can lead to a more productive work environment. To learn more about how EWA can help you, read on.
The CFPB has taken action under its innovation programs, including through an advisory opinion. While the CFPB ruled that earned wage access programs are not credit, two letters pointed out that this legal analysis could be used as an excuse for fintech companies to avoid paying their workers. Despite these issues, lawmakers are expected to introduce legislation in future sessions. The next step is to determine what kind of legislation is needed to protect the American worker. Once lawmakers make their decision, they should ensure that the proposed legislation is fair for all stakeholders. Visit https://www.payactiv.com/ to learn more about the advantages of an earned wage access (EWA) program. Financial stress causes productivity losses of up to $166,000 per year, and 47% of employees report being stressed about their financial situation. Employees who are unable to cover emergency expenses are more likely to be absenteeism and take sick days than those who do have access to a salary advance program. In addition to helping employees handle their personal finances, Earned Wage Access also helps employers prevent the use of predatory credit cards. EWA solutions are increasingly common and are being offered by a wide variety of companies. Some EWA solutions pair financial technology with HR software. For example, many HR departments use apps to integrate with payroll software and make employees' net wages available automatically. Another advantage of financial EWA apps is that they can help employers deduct payroll taxes before releasing funds to their employees. The result is a more accurate calculation of an employee's net income. As an employer, Earned Wage Access is a valuable tool to help employees improve their financial wellness and make them feel important to you. By making employees feel valued and appreciated, they will be more motivated to work hard and produce more. And this will lead to happier and more productive employees. And that's a win-win situation for both employees and employers. Consider the following five benefits of Earned Wage Access and the many other benefits it brings to your company. Click here for more useful info on Earned Wage Access. Ease of implementation. Employees who earn an on-demand pay benefit will be free from the stress of monthly bills. Moreover, workers with a flexible schedule will be more likely to attend work and be more productive. Earned Wage Access can be implemented without any changes to your current payroll processes, and it increases employee engagement. According to the American Payroll Association, 73% of employees who receive this benefit feel their employer has improved their opinion of them. Flexibility of pay. Having the flexibility to receive earned money is crucial for employee well-being. Employers will see an increase in productivity and reduce employee turnover by giving employees the option to receive their money sooner. Moreover, employees will be less likely to use payday loans, which can result in expensive fees and cyclical debt cycles. Earned Wage Access protects employees from these financial shocks and gives them a path to financial stability. For more information, check out this related post: https://en.wikipedia.org/wiki/Finance .
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