Top
image credit: Adobe Stock

On-Demand Pay: Employees Love It, But Tax Implications Linger

September 2, 2022

Research suggests that more than 60 percent of U.S. workers would like to be able to access their earnings before their regularly scheduled paydays. Responding to this desire, many employers and their payroll providers now offer so-called on-demand pay arrangements that allow employees to receive their wages the same day they earn it. While on-demand pay may be a valuable recruiting and retention tool for employers, the immediate availability of wages carries with it certain tax implications for employers that may not easily be avoided without updates to the tax laws and regulations.

Read More on National Law Review