Sep 26, 2024
Chances are you have given an employee an advance on his or her pay; but if you haven’t, it may just be a matter of time. Employee advances are something that many employers give regularly to help support employees who have to live paycheck to paycheck.
What is an employee cash advance?
An employee cash advance or a payroll advance is something you as an employer can provide to employees in order to help them smooth out their cash flow. Typically, an employee would request a cash advance from your payroll department with the intention of having the advance repaid on the next paycheck. Unfortunately, this doesn’t always go as planned.
Reconciliation of advances, trying to track down employee payments, and notifying your payroll department of deductions aren't things you should have to worry about. Unfortunately, many employers choose to take on this burden and, in some cases, end up out of pocket for employee advances. That’s right, while you are working hard to reconcile payments and keep track of which employee owes you what, chances are you overextended someone and the risk of them quitting and leaving you with the bill is very real. As a result, only 13% percent of employers give cash advances even though 78% of all employees live paycheck to paycheck.
We have partnered with ZayZoon, a solution that can help your employees and save you a lot of hassle.
How ZayZoon Can Help with Employee Advances
ZayZoon is a financial technology company that was created to help employees get ahead of sudden expenses, protecting and improving their sense of financial wellness. Through partnerships with payroll and employers, ZayZoon gives employees access to their earned wages, well before payday, so they can avoid payday loans and bank overdraft fees. ZayZoon is not a loan, it is a fixed fee service for employees and there are no administration requirements for the employer. ZayZoon assumes the risk of advancing the funds and the administrative overhead of managing cash advances, all at no cost to the employer.
Users can instantly access their wages as earned– 24 hours a day, 7 days a week, 365 days a year and funds can be transferred by ZayZoon to their bank account in seconds. Employers who use ZayZoon find on average 12% of their employees use the service, improving employee wellness, productivity and increasing retention.
Are you ready to change the way you think of payday? Ask us about ZayZoon today!
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