DailyPay has introduced a new deductions method for On-Demand Pay, giving employers greater flexibility in how they provide employees with access to earned wages before their regular payday. Under the new option, On-Demand Pay transfers are recovered through a standard payroll deduction, adding an alternative to DailyPay’s existing full-funding method. The company said it is now the only large-scale provider offering both approaches, allowing employers to select a model that better aligns with their payroll structures and operational requirements. The deductions method is designed to work with existing Human Capital Management (HCM), payroll, and time-management systems, helping organizations introduce the benefit without changing the employee experience or disrupting established payroll processes. DailyPay currently supports more than 6 million eligible employees, 2,000 employer clients, and 180-plus pre-built integrations.
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“Through a decade of experience in On-Demand Pay and more than 150 million annual transfers, we’ve applied those learnings to launch our deductions method,” said Poulomi Damany, Chief Product Officer at DailyPay. “The deductions option gives payroll teams control over employee pay profiles, direct deposits and earnings without disrupting their existing systems. It’s a simple way to expand options for employers.” The company said the new approach also supports its broader goal of modernizing payroll and providing workers with greater financial flexibility, backed by implementation support and 24x7x365 multilingual customer service. DailyPay client Randy Porter, Chief Financial Officer at Villas of Holly Brook Senior Living, said, “DailyPay took the time to understand how our payroll operates, and found a solution that works best for us. The deductions method fits naturally into our existing setup – employees are able to receive their pay easily, and our payroll team hasn’t faced any interruptions into our current setup. It’s a win-win for our partnership.”
Read More: DailyPay Extends On-Demand Pay Leadership with Deductions Method
