Payroll
Employees Can Now Choose Their Own Payday
With the launch of Flexible Pay, businesses can let employees choose their own pay schedule, which means that, for the first time, employees can get paid for work they’ve already completed, independent of their employer’s payroll schedule.
Jun. 21, 2018
Gusto, a provider of payroll, benefits and HR technology platform, has launched a new way for employees to get paid. With the launch of Flexible Pay, businesses can let employees choose their own pay schedule, which means that, for the first time, employees can get paid for work they’ve already completed, independent of their employer’s payroll schedule.
“The two-week pay schedule should no longer exist in today’s world. It’s a relic of calculating payroll taxes manually and was instituted in the U.S. almost 90 years ago. With modern technology, employees shouldn’t have to wait weeks to get paid,” said Gusto co-founder and CEO Josh Reeves. “Flexible Pay lets employees decide when they want to get paid for the work they’ve already done, without additional cost to employers—it’s the way we believe everyone will get paid in the future.”
Flexible Pay can help people stay on top of their finances or react to sudden expenses without using “payday” loans or other high-interest loans like credit cards. Eligible employees set up direct deposits of their earned wages through their Gusto account and choose when they want to get paid—as soon as the next day.
Eligible employers are able to offer Flexible Pay in just a few clicks through Gusto’s platform, without any changes to their existing pay schedules and debit frequency. Gusto calculates, pays and files relevant taxes automatically, providing peace of mind when payroll is run. Because Gusto advances the money to the business, employers do not need to run additional payroll or manually approve their employees’ Flexible Pay requests.
Serving more than 60,000 businesses nationwide, or more than one percent of all U.S. employers, Gusto is a popular private financial technology company that is reimagining payroll, benefits and HR for modern companies. Each year Gusto processes tens of billions of dollars of payroll and enables its customers to provide employee benefits like health insurance and 401(k) plans, many for the first time.
Flexible Pay is available in Texas and will expand to additional states later this year. To provide Flexible Pay to your employees or learn more about how your employer can offer Flexible Pay to you, visit gusto.com/flexible-pay.