DailyPay connects with your timekeeping system to determine the gross earnings of the employee (done via batch reporting or through an FTP or API connection). DailyPay sets an Available Balance, which the employee can transfer as needed. The Available Balance is typically 80-90% of the anticipated net earnings (e.g., after taxes, deductions, etc.). The employee can transfer the desired amount from the Available Balance to their bank account at any time prior to payday for a small fee.
On payday, the employee’s full paycheck is deposited into their DailyPay Account (“DPA”). The DPA automatically deducts the amount the employee has already transferred before payday. The DPA automatically deposits the remaining balance into the employee’s primary bank account on payday. By payday, the employee receives the remainder of their paycheck, minus any early transfers.
Note: if no early transfers were made, the employee would simply receive their full paycheck on payday without any deductions.