DailyPay | DailyPay (2024)

FAQs

What is the downside of DailyPay? ›

Disadvantages of Daily Payroll

While the payroll is simpler and doesn't take as long, the costs add up. It costs on average $1.50-$1.90 for each deposit for every employee. If you process a paycheck and deposit it into an employee's account every day, costs can add up quickly. Lack of saving by employees.

You will have access to any amount up to, and including, the available balance shown in your DailyPay online account. For the first three pay periods after you enroll in DailyPay, your Available Balance will be 50% of your gross pay 25% if you have garnishments, such as child support payments).

DailyPay is the gold standard in on-demand pay with software that easily integrates with a company's payroll and time management systems. DailyPay provides employees with early access to their earned pay. This means employees have the power to choose when to get their pay, instead of having to wait for payday.

For example, at first you might see half of your earnings as Available in the DailyPay app. You can get all of that before payday if you choose. DailyPay will deposit the rest of your net pay (after early transfers, early transfer fees, and any taxes and deductions) into your bank account on payday.

"I think that DailyPay can work both ways," said Arlo Washington, president of People Trust Community Loan Fund. "It can be good for some and bad for others. If you don't have good money-management skills, then it could put you into a debt trap."

If you did make DailyPay transfers in the pay period to get your earnings early, then your paycheck will include everything you earned after your DailyPay transfers, any DailyPay fees, tax and other withholdings are taken out.

There will be a flat fee of $3.49 or less for each instant transfer. Fees vary by employer; log in to your DailyPay account for more information. No matter the amount of the transfer, the fee won't change. The fee will be taken directly out of the transfer requested.

How often can I use DailyPay? You can make up to 5 transfers per day. Choose to make transfers on an as-needed basis or have money sent to you automatically every day. This choice can be made (and changed) at any time by going to the “Account Settings” page at and scrolling down to “Payment Settings”.

If your earnings haven't been updated in the DailyPay app, we're here to help. Typically, there are a few common reasons for this: Weekend (Salaried earnings will never update during the weekend) Day before payday (available earnings goes to $0 so we can send you the remainder pay the following day)

If you're closing your earnings account but have made transfers in this pay period, DailyPay will deposit your paycheck on your next payday. If you've made transfers with continuous access from two pay periods, DailyPay will deposit your paycheck on your next two paychecks.

Does DailyPay count as direct deposit? ›

The DailyPay account (DPA) is a unique bank account that replaces an employee's existing direct deposit account within the payroll system, so that DailyPay can handle all reconciliation of advanced earned pay without requiring you, the employer, to make any changes to your payroll process.

While using DailyPay won't change anything when you file or pay your taxes, taking out a 401(k) loan creates costly and often confusing issues during tax season. On top of the fees, you will be taxed when you take the money out, and you will be forced to repay the loan with after-tax dollars.

There are no maintenance charges, monthly fees, minimum requirements or hidden fees. With the DailyPay Card, you can instantly access your earned pay for no fee.

Updated DailyPay Calculation FAQs

Here's how it works: At the beginning of the pay period, you'll typically see a higher amount available for transfer. Then, as you work more (which generally means your deductions increase), you will see a slight decrease in the amount made available from later shifts.