Earned Wage Access
Earned Wage Access (EWA) allows employees to withdraw earned wages before payday, offering financial flexibility. Clients can choose between a one-time withdrawal or a permanent setup for automatic payouts. The system calculates the maximum possible payout based on payroll data and ensures seamless repayment once the salary is credited to the account.
Traditionally, employees receive wages on a fixed schedule (e.g., bi-weekly or monthly). However, Earned Wage Access (EWA) offers a more flexible approach, allowing employees to withdraw wages they’ve already earned at any point before their usual payday. This provides financial flexibility to cover unexpected expenses before the next paycheck.
User Story:
Client expresses interest in EWA: The client indicates they want to use Earned Wage Access.
Check for Direct Deposit: The system verifies if the client is connected to Direct Deposit (via Pinwheel Direct Deposit).
- If not connected, the system prompts the client to register.
- Refusal to register results in denial of EWA access.
- Successful registration continues the process (verified via webhook).
Data Retrieval and Calculation: The system retrieves relevant employee and payment data to calculate the potential EWA amount:
- Employment status, termination date, pay frequency, last payroll deposit dates, and amounts.
- Uses these to estimate the next payroll deposit date and the maximum possible EWA payout based on average salary and time until payday.
Eligibility Criteria: To proceed, the client must:
- Be an active employee (no termination date).
- Have a bi-weekly, monthly, or weekly pay frequency.
- Have a full paycheck connected to Direct Deposit.
EWA Modes: Two EWA options are available:
- Once: Clients can withdraw wages up to 3 days before payday, with a single transaction per cycle.
- Permanent: Automatically deposits funds every cycle, 3 days before payday.
Configure EWA: Clients choose their EWA mode and amount (up to the calculated maximum) and confirm the transaction via SMS or MFA.
Fund Transfer: A transaction is made from the Product Funding to the client’s account.
Monitoring and Direct Deposit Lock: The system monitors incoming direct deposit funds and locks changes to Direct Deposit settings until the process is completed.
Repayment: Once salary is credited, funds are withdrawn from the Product Funding. If insufficient, attempts are made to recover the remaining balance from the client’s accounts.
Process Completion: Once repayment is successful, the process completes, unlocking Direct Deposit settings.
Updated 13 days ago