Earned Wage Access

Recent technological advances and an increase in the number of workers in the gig economy have fueled interest in faster payment methods like earned wage access (often referred to as on-demand pay). With earned wage access (EWA), workers are able to access their pay when they want, rather than according to a scheduled determined by the employer. This interest has spread beyond those involved in the gig economy to employers and employees in "traditional" businesses, allowing employees to gain access to wages earned before payday. However, the concept of EWA raises many questions for employers, including when the actual date of payment occurs for employment tax withholding, depositing, and reporting purposes.

APA Report: Understanding Earned Wage Access and Payroll
Earned wage access (EWA) programs have moved from the early adoption phase to become a more established business practice and part of the benefits package offered to employees. When EWA programs are used effectively, employees can gain greater financial security. These programs can help employees with the misalignment of expenses between paydays but are not a complete solution to employees' financial problems.

The American Payroll Association (APA) set out to understand the advantages and disadvantages of EWA technology and potential impacts on payroll management. The Understanding Earned Wage Access and Payroll report contains everything you need to know about employer-integrated earned wage access. This EWA report helps to breakdown the information for payroll professionals and government decision-makers.

Key topics include:

• A step-by-step guide to selecting an EWA provider
• The legal and regulatory framework for EWA