Ceridian announced yesterday that they will offer a real-time pay algorithm, called Dayforce On-Demand Pay, starting early next year.
With this news, they are elevating the daily pay benefits space and validating the exciting changes occurring in the payroll industry. This is a clear indicator in the market of the rapid growth of the daily pay benefits category.
Elevating the On-Demand Pay Category
In order for a company to offer the daily pay benefit, there are really three things that need to occur:
- Someone has to know how much the employee worked.
- Someone has to calculate the net pay amount associated with those hours.
- Someone has to fund and remit those payments.
At DailyPay, we do all three. We have designed advanced technology to convert an employee’s raw punches into a net pay amount. The conversion piece has now been made simpler through Ceridian’s elegant product. DailyPay also funds those payments so the employer doesn’t have to.
We are excited about the Ceridian announcement and its various applications for the daily pay benefits category. We expect there will be some companies who can run and fund daily pay themselves and in the process, help their employees.
Other companies will prefer to have us do it for them - without having to approve each payment - and leverage the power of these types of innovative payroll algorithms.
One might imagine a perfect world where you get the benefits of both (i) not having to run payroll yourself while (ii) having employees receive their true earned wage amount ahead of payday.
I think we may see that soon enough.