As Workers' Comp Insurance Experts, we are constantly looking for products and partnerships that ease some of our customers burden while still providing excellent results. We wanted to share news about an exciting feature launch from our payroll partner Square Payroll. Earlier this week, Square announced the launch of two new features that enable Square Payroll customers and their employees to more easily and effectively manage their cash flow: On-Demand Pay for employees, and Instant Payments for employers.
“The traditional payroll process is slow and rigid, creating cash flow constraints for employees and businesses alike. This is even more pronounced now given the current economic conditions,” said Caroline Hollis, GM of Square Payroll. “Because businesses still run payroll on a fixed schedule, employees are paid days or weeks after they’ve worked. We created On-Demand Pay for employees so they can access their earnings when they need them, as soon as their shift has ended. For employers, it can take up to four days for payroll funds to move from their bank account to their team. With Instant Payments, employers can now fund their payroll instantly, getting money to their team faster.”
How The New Features Work
Instant Payments: The new Instant Payments feature significantly reduces payroll processing delays by allowing employers to use the funds in their Square Balance to pay their team. Employees using Cash App will receive their pay instantly - even on weekends. Employees with direct deposit to a bank account will receive their pay as soon as the next business day. Employers can hold onto their cash longer and run payroll when it's best for their business.
Instant Payments is 100% free Unlimited runs with no fees or extra cost.
On-Demand Pay: Employees using the Square Team App can now access up to 50% of their earned income (max $200 per pay period) as they work. Employee can transfer to Cash App for free or to a linked debit card for a 1% fee of the wages transferred (max fee of $2) The employee's on-demand wages are only withdrawn from the employers account when employer send their regular pay run.
Angelica Barragan, who owns Angelica B Beauty salon in San Diego, said, “Everyone is going through a difficult time right now, so it’s amazing to find a tool that helps my team react to the current situation and get money a little quicker when it’s needed.”
About Square Payroll
"Square Payroll is the online payroll service trusted by small businesses. Weather your new to payroll or switching from another provider, our goal is to make payroll the easiest thing to do. Pay employees, contractors, or both online in just a few clicks. Plus, we automatically handle your tax fillings, and payments to the IRS and state tax agencies."
For more information on these solutions, please visit: https://bit.ly/35plEqJ
About Colony Solutions
Colony Solutions combines human expertise with a passion for using technology to un-complicate business insurance. Worried about the cost of a policy? Colony offers Pay As You Go Workers’ Comp that integrates with Square Payroll, which enables premium payments tied to your regular payroll runs. With a Pay As You Owe Workers’ Comp policy, you protect your business, your employees, and your cash flow.
Get a fast workers’ comp quote from us by visiting our Quote Page.