What is the downside of DailyPay?

Asked by: Hazle Schoen  |  Last update: January 21, 2025
Score: 4.8/5 (31 votes)

Running daily payroll can lead to large administrative and payroll costs. It can also make your payroll team have to work after employees are done working, as they can't calculate pay to pay an hourly employee until they are done working for the day.

Does DailyPay mess up your paycheck?

DailyPay will not affect where you receive your direct deposits. After you make your first transfer, your paystub may look slightly different on payday.

Does DailyPay have hidden fees?

Employees only pay the fee when they use the service. Employers have the option to subsidize the fees. No hidden fees.

Does DailyPay take half of your paycheck?

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. You won't be able to get all your earnings early with DailyPay. It's likely to be around half of what you earn, especially in the first few weeks.

Is DailyPay worth it?

Benefits of Daily Payroll

The biggest benefit of a daily payroll is that employees get paid faster! Instead of waiting for every other week, employees get paid at the end of the day after their work is completed. This is beneficial for employees who live paycheck to paycheck and can't afford waiting to pay bills.

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35 related questions found

Does DailyPay show all your money?

DailyPay looks at your earned wages and calculates an Available Balance – an approximation of earnings based on the hours you've already worked, minus any withholdings (like taxes, garnishments, etc.). As you work during the week, you will build up your Available Balance.

What happens after you cancel DailyPay?

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.

Why did my DailyPay balance go to zero?

Yes, most salaried employees are eligible for DailyPay. You will have access to your earnings starting on the 4th day of each pay period. This means for the first 3 days of your pay period, you will not be able to transfer any of your earnings, and you may see a $0 balance.

How many times can you use DailyPay in a pay period?

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”.

What bank is associated with DailyPay?

All DailyPay client accounts are operated by Wells Fargo. So, after your direct deposit information has been updated with your company it should read as a Wells Fargo account. Was this article helpful?

Does PTO show up on DailyPay?

Vacation, Sick Time, and Overtime are not included. If you do not work any hours during a pay period, you will not have an available balance.

Can I borrow money from DailyPay?

DailyPay is not a payday loan. Payday loans often have hidden fees or interest payments that can leave the borrower in debt. DailyPay enables you to access your earnings before payday, and there is no loan to repay of any kind.

Why is DailyPay giving me less money?

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.

What is the downside of earned wage access?

Earned Wage Access Can Be Expensive For Employees

While it may be free to sign up, it's not free to use. Many providers charge a fixed fee every time an employee accesses their funds, sometimes offering up to five transfers a week. This may seem like a benefit, but if you do the math, these fees can quickly add up.

Does DailyPay affect your taxes?

DailyPay allows companies to offer their employees access to their earned pay before their scheduled payday, without changing their payroll processes, including the timing of the payroll funds and withholding of taxes.

Do I lose money using DailyPay?

There are no repayments or interest fees when you transfer funds from DailyPay. You can only pull from your own earned but unpaid wages, which acts as a safety net against accumulating more debt. That money is already rightly yours in this moment, unlike the money in your 401(k).

Does DailyPay charge a fee?

No monthly service fee for your account. No fee for direct deposit funds from employers, tax refund or government benefit providers. This is a third-party fee and is subject to change. Fees of up to $5.95 may apply when reloading your card with cash at Green Dot® Network reload locations offering cash reloads.

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.

How much of your paycheck does DailyPay show?

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 post enrollment in DailyPay, your Available Balance will be 50% of your gross pay 25% if you have garnishments, such as child support payments).

How do I get out of DailyPay?

To cancel from the DailyPay app, an employee simply needs to navigate to Menu (accessible from the top left of the home screen) > Settings > Account Cancellation.

Can I use DailyPay with any job?

If your new employer doesn't offer DailyPay, you won't be able to access on-demand pay using DailyPay, but you can still spend, add money and use your DailyPay Card in every other way.

Why can't DailyPay find my employer?

If we can't locate your employer with the email you entered, you will be prompted to enter pieces of information you use at work to help us find them. This could include phone number used at work, email used at work, and/or Employee ID.

What happens if I delete my DailyPay?

Please note: If you have made earnings transfers ahead of payday, you may request DailyPay account closure at any time, but we'll receive one final paycheck from your Employer to cover the transfers that we sent you early, passing along any remainder pay to your bank account on file.

What companies use DailyPay?

Companies using DailyPay for Earned Wage Access include: Acrisure, a United States based Insurance organisation with 17000 employees and revenues of $4.30 billion, Duracell, a United States based Manufacturing organisation with 3200 employees and revenues of $2.40 billion, Barnes & Noble Education, a United States ...