An unexpected expense of $400 can force more than one-third of American adults into a difficult financial situation.Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2018, May 2019
With the fragility of many employee’s finances, employers like Wal-Mart have invested in systems that help relieve some of the stress from unexpected expenses. But, as a small employer, how do you keep up with the benefits big employers can offer?
Payday loans stink for employees and advances stink for employers. So what’s left? Gusto Cashout is the answer.
Gusto Checkout — Much, Much Better than a Payday Loan
Let me back up. Gusto is an awesome online payroll service, which if you haven’t seen it, you should check it out. First, it just looks cool. Of course, that isn’t enough. So how about the fact that it is the least expensive of national payroll services. By a lot.
Biz Hippo uses Gusto for our payroll clients, bundling our services around theirs. They offer benefits administration and a very affordable 401(k) plan with Guideline.com. You can run your payroll on Gusto by yourself, or you can have us do all the heavy lifting for you.
But anyway, back to Cashout. Gusto recognizes that employees occasionally need their paycheck early. They also realize that it is a pain for employers to manage. So, if your business runs payroll on Gusto, the employee lives in an eligible state, and the employee is eligible, the employee may request an advance through Gusto.
The employer does nothing. The employer doesn’t even know it happened. And the employer is not responsible for defaults on the debt.
What’s the catch? Well, the employee is limited to 50% of the paycheck up to $1,000. It is also limited to what Gusto estimates they have already earned that pay period and you can only do two advances a pay period. And there’s a fee.
The fee is 1% of the transaction, so for a $500 advance, that is $5. Not free, but much smaller than an overdraft fee, credit card late fee, or the dreaded payday loan.
So, yes, you can offer the same benefits as the big guys. You just have to pick the right providers.
We’ll run your payroll for $15 / month / employee. And by “run” we mean do everything related to payroll. View our plans and contact us for more information.
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