Don’t make employees wait for payday: Your simple guide to earned wage access setup for payroll teams

Planning for flexible pay: A step-by-step checklist for implementing earned wage access in payroll 

While the complexity of integrating EWA depends on a variety of organizational factors (e.g., size, expertise, resources, technology), there are common steps that can guide your approach.

• Step One – Validate the need: Without taking time to understand the financial needs of your employees, you can’t know whether EWA is right for you. This includes looking at your compensation rates and how they compare to the cost of living for your employees. Ideally, this information can come directly from your employees through focus groups or surveys, or you may need to work directly with human resources to understand the compensation rates across the organization. 

• Step Two – Connect (and reconnect) with different departments: EWA involves a variety of departments beyond payroll, including finance, human resources and technology services. Each will have a role to play, whether it relates to the technical side of implementation or communication about the program. The earlier these colleagues are engaged in the process, the better chance of consistency and shared buy-in.  

• Step Three – Review all aspects of compliance: In addition to verifying requirements with the Canada Revenue Agency (e.g., reconciliation practices), keep in mind that EWA may also require process adjustments based on employment standards, as well as privacy and data protection legislation in your province or territory.

• Step Four – Verify your approach and suppliers: Determine whether your approach to EWA can be integrated into your existing payroll system or will require employees to work with an external provider. If you plan to work through a supplier, reach out to several for demonstrations of their services, along with quotes and references to bring back to your team. Be sure to compare access fees for employees, as these vary greatly across some providers. In some instances, it can even be more costly for employees to access EWA than payday loans. 

• Step Five – Pressure-test your systems and documentation: When your systems have been set up, take the time you need to test them with a small group of employees. Monitor their experience accessing these services with plenty of opportunity to provide feedback and troubleshoot any issues. In addition, use this time to draft, gather feedback and update your key documentation, including policies, staff communications and training materials. 

• Step Six – Launch and evaluate: As you roll out your program, ensure it is paired with a comprehensive communications and training plan, coordinated across all impacted departments. While it is important to demonstrate the value to your organization, be sure to prioritize transparency to ensure employees understand how EWA works (i.e., Are there any fees for employees? How much can be withdrawn prior to payday?) and how this type of service fits within your larger financial wellness program. 

Over time, in addition to supporting employee use and adjusting your system, be sure to evaluate the overall impact of EWA, including impacts relating to productivity such as absenteeism, leaves of absence and turnover.