Have you ever wondered why you only get paid every two weeks? Do you ever wish you could get paid more quickly? Here at Gusto, we’ve been working on a new feature that will redefine payday as you know it—it’s called Flexible Pay.
Flexible Pay gives employees the freedom to choose their own pay schedule and get paid when they want. For the first time, employees can get paid for the hours they’ve already worked with a few simple clicks from their Gusto account. For the millions of Americans who can’t afford a $400 emergency expense, and for those who want more flexibility in their daily budgets, we think this feature will make a big difference.
The magic of Flexible Pay extends beyond the employee. The employer doesn’t have to do any heavy lifting because Gusto takes care of everything—there’s no need to run an off-cycle payroll or calculate taxes because we take care of all of that automatically. When an employer offers Flexible Pay to their employees, Gusto advances the pay using our own funds so the employee gets paid as soon as a day later. In other words, the business’ cash flow will not be impacted. ?
Flexible Pay is the result of months of research and conversations with our customers and their employees about pay schedules. Employers frequently told us that they prefer the financial flexibility and lower overhead of monthly or semimonthly payrolls, but they were also acutely aware of the financial anxiety of some of their employees. Many employers even provided informal wage advances to their employees so they could avoid payday loans or maxing out their credit cards. Employees, on the other end, really wished they could just access the pay they had already worked for and get paid faster. We built Flexible Pay be the best of both worlds.
We believe Flexible Pay will become the new standard for payroll. Consider this: 30 years ago, many of us took a physical check to the bank and deposited it with the help of a friendly bank teller on payday. Today, most Americans receive their pay through direct deposit right into their bank account. Going forward, you’ll be able to get paid for the work you’ve completed when you want. I’m excited that the future of payroll starts today at Gusto!
Interested in Flexible Pay? Join our waitlist.