Salary advance
Reducing financial stress, PayCaptain’s free salary advances give more financial flexibility for employees facing unexpected expenses, those who are struggling or who want to manage their weekly budget better. A highly valued benefit in our payroll software, free on demand pay saves money and helps prevent employees spiralling into debt by avoiding costly credit or expensive payday loans.
What is a salary advance?
Salary advance is a benefit that eases employees’ short-term financial worries with free access to a portion of their accrued earnings before payday. On demand pay helps employees meet their immediate outgoings while protecting their pay to meet bills and direct debits at the end of the month.
Free automatic weekly advances
Employees manage their money better with regular wage advances of up to £50 per week. Paid into your employee’s account every Monday morning, automatic weekly advances help with day-to-day expenses like travel to work and lunches
Free emergency cash
Available instantly via our payroll app, emergency cash is a one-off payment of up to £200 to ease the financial burden on employees when unexpected payments arise
Features of our wage advance solution
Convenient self-service for employees: Employees set up automatic weekly advances or request emergency cash quickly and easily though the PayCaptain payroll app.
Simple, automated process: Our wage advances are fast, efficient and fully automated, eliminating the need for administration from your in-house team.
Free Instant access to earned wages: Employees access a portion of their accrued wages when they need it, spreading their pay more evenly across the month.
Benefits of on demand pay for employees
Reduces stress
Helps employees manage their budgets better.
Saves money
Pay on demand saves money by avoiding expensive short-term credit and payday loans.
Flexible options
Offers a choice of salary advances most suitable the employee’s financial position.
No fees
On demand pay is free for employees, with no charges or interest to access accrued earnings.
Improves financial wellness
Helps employees when transitioning from weekly paid to monthly paid.
More control
Gives your employees autonomy over how and when they receive their pay.
Protects credit position
Payday wage advances help prevent employees spiralling into debt.
How salary advance works
Salary advance functionality from PayCaptain allows employees to access up to £200 of their wages ahead of their scheduled payday. Access is quick and easy, with employees setting up wage advances in our mobile payroll app – either automatic weekly advances of up to £50 per week or a one-off emergency payment of up to £200. Salary advances, available when earnings have been accrued, are free for employees, with no fees, charges or interest to access their own money.
Funded and facilitated by PayCaptain, our wage advance feature eliminates in-house administration and comes at no additional cost to employers. Managed by our AI powered payroll and deducted automatically from the employee’s net pay on their scheduled payday, the earnings balance is paid after tax and deductions are applied.
Put your employees in control of their pay with simple, efficient and fully automated salary advances from PayCaptain.
Benefits of wage advances for employers
Saves time
Employees easily set up wage advances in our payroll app. They’re funded and facilitated by PayCaptain, eliminating any administration by your in-house team.
Improves cash flow
Your cash flow is protected between pay runs with on-demand pay that’s funded by PayCaptain.
Saves money
Wage advance functionality is free for both employers and employees, with no charges or interest when accessing earnings.
Increases employee morale, satisfaction and loyalty
Providing early wage access shows the value you place on your employees and their financial wellbeing.
Increases productivity
Salary advances reduce absenteeism and presenteeism associated with poor mental health brought on by financial stress.
Attracts the best talent
By providing highly valued benefits like salary advances, you’ll be recognised as a modern and innovative employer, attracting and retaining the best talent.
Security and integration with our payroll software
Salary advance is a core functionality in PayCaptain’s HMRC-recognised payroll software and is safeguarded by the same stringent ISO27001 security measures we have in place to protect all sensitive financial and employee data. Our robust protocols include encryption, authentication and strict access controls, protecting the security and integrity of all on-demand pay transactions and data.
What do our customers think about our salary advances features?
Our team loves having early access to their accrued earnings… it builds a level of trust.
Ann-Marie Sarantis
I really like the access to emergency cash. I am at peace knowing that there is a little bit of money for me to access in tough times.
Aiswarya
I can have early access to my salary. It just really takes away a lot of that stress when you get those unexpected payments come up.
Oliver
Frequently Asked Questions
What is a wage advance?
A wage advance is a highly valued benefit for employees that lets them access some of their accrued earnings before they’re due to be paid. Wage advances help employees deal with every-day expenses, such as covering the cost of travelling to work or paying for lunches. They can also be used for paying unexpected or emergency expenses. Salary advance is also a valuable financial tool to help employees change from weekly paid habits to monthly pay if they’ve had a change of job or pay frequency.
How much do salary advances cost?
PayCaptain’s on-demand pay is free for employees and comes with no additional costs or charges to employers. Wage advances are funded by PayCaptain, which protects an employer’s cash flow between pay runs. Advanced sums are recovered by PayCaptain at the time of running payroll.
We understand that employees who access the salary advance features may already be in a difficult financial position. At PayCaptain, we don’t believe in adding to their cost burden by charging a fee for them to access their own already-earned income. The PayCaptain app offers tools and support to help employees build savings through automatic transfers from payroll, opening savings pots or via SmartPay, or access their pension information, reducing reliance on salary advances as their financial resilience grows.
How do you apply for a salary advance?
Salary advance, also known as on demand pay or early wage access is core functionality in PayCaptain’s outsourced payroll software. Employees can quickly and easily set up automatic weekly advances of up to £50 through our mobile payroll app, to be paid into their bank account each Monday morning.
One-off emergency payments are available for employees needing extra help when facing unexpected bills. As with other wage advances, emergency payments can be requested in the PayCaptain app and, as long as salary has been accrued, will be paid immediately via Faster Payments to the employee’s bank account.
Are salary advances taxable?
Salary advances come from accrued earnings. Employees won’t be taxed on the sum at the time of receiving the wage advance. Tax and deductions will be applied to the employee’s total (gross) salary, then the advance is deducted from the employee’s net pay. For example, if an employee has £1650 net pay and they’ve received automatic weekly advances totalling £200 during the month, the balance of £1450 will be paid into their bank account on payday, with the deduction for the salary advance clearly shown on their online payslip.
What is emergency cash?
Emergency cash is a free one-off advance on salary of up to £200 to help employees deal with unexpected bills or payments. Employees can apply for this salary advance through the PayCaptain mobile app and, if they’ve accrued earnings, will receive a transfer into their bank account via Faster Payments, usually within 2 hours.
Employers can use PayCaptain’s payroll reports to monitor an employee’s use of emergency cash. Repeated use of emergency payments may highlight a deeper financial problem, where employers can step in to offer additional tools and support.
Is there a wage advance app?
Different payroll software providers give access to wage advances using different methods. Our on-demand pay is available at the touch of a button in the PayCaptain mobile payroll app. As long as the employer has activated advance wage payments and the employee has accrued earnings, they can log on and set up automatic weekly payments or use the emergency cash function to access their wages ahead of their normal payday.
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