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Understand On-Demand Pay by Clair
QuickBooks is partnering with Clair to offer On-Demand Pay to your employees. On-Demand Pay is included free with your QuickBooks Payroll subscription.
Prerequisites
To be eligible to offer On-Demand Pay to your employees, you need the following:
An active QuickBooks Payroll subscription in the USA
Have run payroll at least once in the last 30 days
Pay at least one employee through Direct Deposit
Employees may need to meet some additional criteria on their end, including access to QuickBooks Workforce.
What is On-Demand Pay
On-Demand Pay is an earned wage access solution allowing qualified employees to request advances based on their time and attendance data without disrupting your payroll. It’s offered through QuickBooks’ partnership with Clair, a financial technology company that integrates with payroll providers. Standard advances arrive in your employee’s bank account within 1-3 business days at no cost, or employees can choose to receive their funds instantly² for a $4.99 fee.
On-Demand Pay is an optional feature for your employees–not everyone will need or use this benefit, but it’s there for those who need it, when they need it.
How does it work for employees
If they’re eligible, employees using Quickbooks Workforce can get early access to a portion of their earned wages by requesting an advance through Clair. Advances are issued by Clair’s partner bank, Pathward®, N.A.
Available advance amounts are determined using timeclock and payroll data to estimate the wages the employee has already earned; no credit check required.
What to expect as an employer
You’ll receive notification 30 days before this benefit is available for your employees. Once On-Demand Pay is enabled for your business, eligible employees can use the service without needing additional approvals from you.
Advances are made by Clair’s bank partner using their funds, so On-Demand Pay doesn’t affect your books or payroll tax deductions. You’re not responsible for lending the funds or handling repayments, even if you terminate an employee who has an outstanding balance due to Clair. You simply review hours and run payroll as you normally would, with no impact on your bank account or payroll process.
How it benefits you and your team
On-Demand Pay is a benefit that QuickBooks has partnered with Clair to provide as a solution to both employers and employees for their financial well-being. You can:
Offer a benefit typically offered at large corporations.
Provide an alternative to employer funded pay advances.
Help your team feel confident that they are covered for unexpected expenses, while avoiding costly debt options.
Frequently asked questions
How do I opt out of On-Demand Pay?
Sign in to your QuickBooks account.
Go to Payroll Settings, then select Shared Data.
Uncheck Provide On-Demand Pay to your employees, straight to their existing debit card account. Powered by Clair.
After you opt out, your employees won't see On-Demand Pay in QuickBooks Workforce, and won't be able to take advances. If any of your employees are repaying an advance, they'll have access to On-Demand Pay until its paid in full, and won't be able to take additional advances.
Will all my employees be eligible for this service?
Not everyone will be eligible to use the service. Eligibility is based on a few key considerations, including identity verification, state of residence, and other relevant laws. All Advances are subject to eligibility criteria and application review.
States excluded from On-Demand Pay:
Connecticut
Massachusetts
Minnesota
New Mexico
Nevada
South Dakota
My employees aren't on QuickBooks Workforce. How do I invite them?
Sign in to your QuickBooks account, then go to Payroll, and select Employees. Go to All apps
, then Payroll, then Employees (Take me there).Select an employee, then select Invite to QuickBooks Workforce.
How is the advance paid back?
Employees are responsible for paying back the amount advanced on the due date. Their direct deposit settings are updated so that repayments for advances are automatically sent from their paycheck to their account with Clair’s bank partner³. You are not responsible for this, and there is nothing you need to do. Employees may also manually repay advances by making a payment with their debit card.
What happens if my employees don’t pay back their advances?
If an employee doesn’t repay advances by the due date, they won’t be able to borrow again until their balance is repaid. Clair doesn’t charge late fees, and an unpaid advance doesn’t impact their credit score. The employee can repay at any time to regain access to On-Demand Pay. Employers aren’t responsible for any advances, paid or unpaid.
¹Clair is a financial technology company, not a bank. All Advances are originated by Pathward®, N.A. All Advances are subject to eligibility criteria and application review. Terms and conditions apply.
²Instant Transfers typically occur in seconds, but may take up to 30 minutes. If your employee chooses to have their advance disbursed to their bank account instantly, they’ll be charged a fee, up to $4.99. This instant transfer fee will be taken out of their advance at the time of disbursement.
³Banking Services provided by Pathward®, N.A., Member FDIC. Clair by Pathward Limited Demand Deposit Account is established by Pathward, N.A., Member FDIC.
For more details on advances and your employees experience, please see Clair’s FAQs
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