Gusto, a payroll, benefits and HR technology platform, today announced the launch of Flexible Pay, a new feature allowing employees to choose their own pay schedule. For the first time, employees can get paid for work they’ve already completed, independent of their employer’s payroll schedule.
“The two-week pay schedule should no longer exist in today’s world,” Gusto co-founder and CEO Josh Reeves said. “It’s a relic of calculating payroll taxes manually and was instituted in the U.S. almost 90 years ago. With modern technology, employees shouldn’t have to wait weeks to get paid.
“Flexible Pay lets employees decide when they want to get paid for the work they’ve already done, without additional cost to employers—it’s the way we believe everyone will get paid in the future.”
Flexible Pay can help people stay on top of their finances or react to sudden expenses without using payday loans or other high-interest loans like credit cards. Eligible employees set up direct deposits of their earned wages through their Gusto account and choose when they want to get paid—as soon as the next day.
Eligible employers are able to offer Flexible Pay in just a few clicks through Gusto’s platform, without any changes to their existing pay schedules and debit frequency. Gusto calculates, pays and files relevant taxes automatically. Because Gusto advances the money to the business, employers do not need to run additional payroll or manually approve their employees’ Flexible Pay requests.
Serving more than 60,000 businesses nationwide, or more than one per cent of all U.S. employers, Gusto processes tens of billions of dollars of payroll every year and enables its customers to provide employee benefits like health insurance and 401(k) plans.
Flexible Pay is available in Texas and will expand to additional states later this year.