How are employee Available Balances calculated?
The Available Balance reported in an employee’s account will be a portion of their earned wages. The Available Balance is the amount shown as “Available” on the home screen of the DailyPay employee app. Previously this was known in the DailyPay App as the Available Balance or Available Now. The available earnings will never represent 100% of their earnings due to a number of factors such as taxes, the time hours are reported, and other payroll deductions such as tax withholdings, garnishments, and other deductions. Our system automatically computes the advance rate - the percentage of earned wages made available to an employee - which is based on the employee’s earnings reports. During the pay period, small changes to the percentage an employee sees will occur, as frequently as on a daily basis. As a general rule, employees will start off with a slightly higher advance rate at the beginning of the pay period. The rate will then organically lower slightly as the pay period goes on and the time to reconcile the employee's earnings with their deductions draws near.
DailyPay administrators can see an employee’s most recent advance rate on the user page in the DailyPay Client Portal. First, navigate to the employee’s page by searching in the Users tab, then click Shifts to see the employee’s pay history. The most recent advance rate will be visible at the top of the pay period shift list.
Employees with new accounts will be set at a conservative advance rate, usually around 60% of gross earnings, until we observe a couple of earnings reports and can adjust it more precisely.
Please advise employees that if they have any further questions about their available earnings, they should contact DailyPay Customer Support team.
Available Earnings Formula
Employee Available Earnings = (Total Earnings Reported to DailyPay * Advance Rate) - Previous Transfers
The advance rate is DailyPay's dynamic proprietary algorithm, set to optimize for the most accurate available amount for each user based on their earnings history.
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