What is Continuous Pay Access?
Continuous Pay Access means after a pay period ends, an employee still has access to their earnings up to the morning one or two days before payday. Because the next pay period may have started in the meantime, the employee may have access to two pay period's worth of earnings at the same time.
How does Continuous Pay Access work?
First, a paycheck is determined by how much an employee earns in a particular pay period. For most companies, there is a gap between when a pay period ends and the payday those earnings arrive on.
Let's look at an example. This is an example pay period of two weeks, with the payday being the following Friday:
This gap (in this example, five days) between the end of the pay period and payday is important. Normally, an employee can only access earnings during the pay period — an employee would lose access during that gap. However, with Continuous Pay Access, an employee still has access to those earnings during the gap (at least up to 1-2 days before payday, so actually four days in this case to account for this):
However, remember that another pay period (blue) has started during that time:
What does this mean?
It means during that time, an employee can access both the red and the blue pay period's earnings at the same time in DailyPay thanks to Continuous Pay Access, as shown below!
All of the earnings from both the previous (red) and current (blue) pay periods during this period will appear in the amount Available now together. For instance, if an employee has $400 available from the previous (red) pay period, and $100 from the current (blue) pay period, the amount listed as Available now will be $500.
How does taking a transfer from two pay periods at the same time work?
When the Available now has earnings from two pay periods at the same time, depending on the payment amount you request and your earnings, the payment an employee receives may consist of only past pay period earnings, current pay period earnings, or both.
The DailyPay system is built to always give an employee access to previous pay period earnings first. In the example above, that would be the red pay period. That means the transfer the employee requests will always draw on past pay period earnings first, and then current pay period earnings if needed.
For an example, let's say an employee has $500 Available now, and the timing of Continuous Pay Access means that this is made up of two pay periods ($400 from the previous (red) pay period and $100 from the current (blue) pay period). All earnings will pull from the past pay period first, so if an employee takes a $450 transfer, that transfer will pull $400 from the previous (red) pay period, and $50 from the current (blue) pay period.
Does Continuous Pay Access activate when an employee first starts using DailyPay?
Continuous Pay Access, if it is available to employees, does not activate until an employee gets their first Remainder Pay, and may no longer be available if the employee does not remain as an active user.
The previous pay periods’ earnings, prior to an employee's enrollment with DailyPay, is paid out to the employee directly from an employer on the regularly scheduled payday.
Important
Remember - previous pay period access is only available up to one or two days before payday. On that date, an employee will see your amount Available Now go down again when we get the pay ready for your paycheck.
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