Access to earned wages at times of financial crisis has become an essential requirement in today’s workforce management sector. As per a 2023 CBNC survey, 70% of Americans are financially stressed. So, having early access to their wages can be a huge relief, especially for employees dealing with an unexpected expense. 

Earned wage access or ‘On Demand Pay’ allows employees to access their earnings before their scheduled payday without relying on credit cards, loans, or salary advances. Paylocity, one of the popular vendors entering this space, has developed an integrated solution that enables employees to cash out a portion of their earned income ahead of the due date. But how long does the process actually take? Let's break it down. 

Paylocity On Demand Pay Service

Paylocity’s ‘On Demand Payment’ service provides employees with real-time access to their earned but unpaid wages. Rather than waiting for a standard two-week pay cycle, employees can request a portion of their earnings directly through the platform. The whole process is fully automated within the Paylocity HR and Payroll ecosystem, eliminating the need for third-party applications or manual calculations. 

This is not a loan or advance service. It only allows employees to get their hands on the money they have already worked for, empowering them with financial stability and control.

How Does Paylocity On Demand Pay Work?

The process is simple and straightforward for employees to follow. Employees can request a portion of their salary at any point throughout the pay period via Paylocity's self-service portal or mobile app. Once submitted, the request goes through an employer approval process, which can be automated based on company policies.

After approval, the system processes the payment, seamlessly integrating with the existing payroll infrastructure to manage taxes, deductions, and compliance. This eliminates any additional administrative burden on the HR and payroll teams. Usually, employees have to pay a small amount for the early wage withdrawal, But Paylocity gives employers an option to cover this cost as per their preference. 

As the funds are drawn from already earned salaries, there is no risk of overpayment or loan default. Employees simply receive the money they have earned ahead of their official payday. 

How Long Does It Take To Receive Paylocity On Demand Pay?

While considering On Deman Pay, the most common question is, how long does it take to get the money?

Paylocity offers same-day access to funds if the request is submitted by 2:00 PM central time. If the deadline is missed, the payment will be processed the next working day. This is a significant improvement over typical payroll cycles, which require employees to wait several days after payroll is submitted for funds to clear through the bank. 

Factor Affecting The Funds Transfer 

There can be many factors influencing the exact timing of funds transfer: 

  • Banking Hours And Transaction Processing: Payments initiated outside of banking hours or on weekends can take slightly longer to clear
  • Employer Approval Policies: Some employers can have manual approval steps, which could add a short delay
  • Payment Method: Direct deposit to a bank account is usually the fastest, while other methods can vary

Paylocity ensures minimal delays, making it an efficient On Demand Pay access solution. 

Why Does This Matter To Employees?

Financial emergencies do not wait for payday. According to various financial wellness studies, a huge majority (two-thirds) of U.S. workers live paycheck to paycheck and frequently turn to high-interest credit options when finances run short. Paylocity helps employees minimize their dependency on payday loans and overdraft fees by providing them with faster access to funds they've earned. It's more than simply a benefit; it's a useful tool for financial stability. 

Additionally, because Paylocity automatically calculates taxes, deductions, and compliance-related information, employees can be confident that the pay they are getting is accurate and will not disturb the routine payroll cycle. 

What’s In It For Employers?

Beyond being an incentive to employees, On Demand Pay can also have strategic value for organizations. 

  • Competitive Edge In Hiring And Retention: Providing flexible pay options attracts talent and increases retention by supporting employees' financial well-being
  • Streamlined Payroll Process: The fully integrated Paylocity On Demand Pay handles taxes and reconciliation automatically without added complexity
  • Positive Workplace Culture: Supporting employee financial stability boosts morale, reduces absences, and demonstrates that their everyday needs matter, creating an engaged workforce

The Bottom Line On Getting Paid Faster

Accessing your earnings through Paylocity On Demand Pay is simple and quick. In the best-case scenario, it can take just a few hours. This near-instant access to earned income represents a meaningful shift from traditional payroll and its fixed timelines, providing both employees and employers with a more responsive, flexible financial tool. 

It's quick, compliant, and designed with employee well-being in mind, reflecting a future in which payroll strikes a balance between control and convenience.