Access a portion of earned but unpaid wages between pay cycles.
Solution
On-Demand Pay is a financial benefit that allows employees to access advances between paydays, often for emergencies or unexpected expenses.
There is a growing demand for flexible pay—as employees navigate increased costs of living—and it’s a great alternative to options like high-interest credit cards or overdrafts.
Gusto partnered with Clair,1 a financial services company, to offer On-Demand Pay—a free benefit that allows employees to access advances without any effort required from employers. On-Demand Pay is available to employees with a Gusto Spending account and managed entirely through the Gusto app for a seamless experience.
How it works Once an employee signs up, here’s how advances and repayments work:
- Eligible employees can get advances between paydays through Clair’s placement in the Gusto app. With Wallet Premium, they can access up to $800 per pay period. There’s no interest, credit checks, or required fees.
- Advances are deposited into an employee’s Gusto Spending account2 within 2-4 business days at no cost, or instantly for a $4.50 fee.3
- Repayments are managed by Clair and are automatically scheduled for the employee’s next payday.5
- Employers can continue to run payroll as normal and there are no adjustments needed if the employee chooses to use On-Demand Pay.
On-Demand Payment tiers
On-Demand Pay limits are based on the following tiers:
Basic: Eligible employees can request up to $150
- Requires a Gusto Spending account
Premium: Eligible employees can request up to $800 ($200 max per advance)
- Requires a Gusto Spending account
- Requires Wallet Premium4 (Direct deposit $500+ every 45 days)
- Most employees start at a $200 limit. With continued on-time repayments over multiple pay periods, the limit can increase up to $800.
Why should employers provide this?
Everyone gets hit with unexpected expenses, and 86% of Americans6 report feeling financially stressed. By offering On-Demand Pay, you can give your employees access to their pay early without any admin costs or changes to payroll. In turn, you can attract and retain engaged talent with a unique and easy-to-use benefit that’s in high demand.
If this benefit is not right for your employees, you can opt your company out of Gusto Cash Accounts through the Benefits tab.
Eligibility There are requirements for both the employer and employees in order to use On-Demand Pay.
For employers to offer On-Demand Pay to employees, the requirements are based on many internal risk factors, including:
- Approved for 2-day payroll
- Consistently run on-time payroll
- Proactively report terminations
For employees to use On-Demand Pay, the requirements include:
Additional qualifications apply.
Employees: Sign up for On-Demand Pay with Clair With Gusto and Clair On-Demand Pay, you can get on-demand access to a portion of your earnings as soon as you clock out of work. You can take control of when you access your earnings to either spend or save.
Clair On-Demand Pay advances have 0% interest and no finance charges.
As a Gusto Wallet Premium user, here’s how to enable Clair through your Gusto mobile app to access up to $200 of your earned wages, early.
- Open your Gusto mobile app.
- In the “On Demand Pay” tile, choose Learn more.
- Review the information and select Next.
- Choose Let’s do it!
- Check the boxes to agree to the terms and select Next.
- If Clair is able to open an account based on your information, you will immediately see the option to request an advance on your next paycheck.
- If you have any questions about your eligibility, contact Clair directly.
Once you are approved for On-Demand Pay, a new direct deposit account is created for you in your payment methods. This account allows you to access up to $200 of your pay before your pay date.
Request an advance Once you connect Clair to your Gusto mobile app by following the steps above, follow the steps below to request an advance.
- Open your Gusto mobile app.
- Tap the On-Demand Pay tile.
- Choose Request an advance.
- Enter the amount you’d like to advance and choose Next.
- Review your advance details and check the box to agree to the terms.
- Choose Confirm advance.
- Choose when you would like the funds to arrive in your bank account:
- Instant Transfer: Funds will arrive instantly (or within 30 minutes), for a $4.50 flat fee.
- Standard Transfer: Funds will arrive in 2-4 business days, for no fee.
- Choose Confirm.
Once your advance arrives, the amount borrowed will be available in your Gusto Spending account.
Repaying the advance
The borrowed amount is automatically deducted from your next paycheck through Gusto. You may also choose to repay an advance early. For more information on how to repay the advance, please reach out directly to our partner, Clair.
Ongoing eligibility
Once you’re approved for On-Demand Pay, you can have ongoing access as long as you meet the following requirements:
- Employment with an employer that uses Gusto for payroll processing
- A Gusto Wallet Premium Spending Account
- Repayment of any outstanding advances obtained through Clair
FAQs Q: Tiered limit increases: What are they, and how do I get them?
A: Within your On-Demand Pay experience powered by Clair,1 you can become eligible for higher maximum advance limits.
Here are the tiers and how you can qualify:
- Core: You can qualify for up to a $100 advance limit by signing up for a Gusto Wallet Spending account.2
- Plus: You can qualify for up to a $150 advance limit by signing up for a Gusto Wallet Spending Account and having at least partial direct deposit set up into the Gusto spending account.
- Premium: You can qualify for up to a $200 advance limit by setting up direct deposit of at least $500 over a 45-day period to your Gusto Spending account and/or Savings goals account.
Q: How can I upgrade to an instant transfer if I accidentally selected the Standard 2-4 business day transfer?
A: To upgrade to instant transfer,3 contact Clair’s support team that services Gusto-partnered accounts. They'll let you know if this option is available for your current advance.
There are two ways to contact them:
Q: How close to my paycheck can I take an advance?
You can take an advance1 anytime after reaching the minimum $50 accrual threshold, and up until your employer confirms your paycheck when they submit payroll.
Important timing considerations:
- Taking an advance the day before your paycheck deposits may result in automatic repayment the very next day. The qualifying earnings are only eligible for advance until your employer pays out for that pay period.
- If you need funds a day before payday, you can still take an advance, but consider using the instant transfer3 option.
- After repayment occurs, you'll need to accrue a minimum of $50 to become eligible for another advance.
Our recommendation: To avoid unexpected repayment timing, we suggest not taking advances a day or two before your scheduled payday unless absolutely necessary.
Q: How are my earnings calculated?
A: Here's how your available advance1 is calculated:
- You accrue 50% of your gross pay, based on the dollar amount of your most recent paycheck and the number of days in your Gusto pay period.
- Your maximum available advance amount is limited by your membership tier. (See the first FAQ in this section titled “Tiered limit increases: What are they and how do I get them?”)
- Any earnings beyond your tier's maximum limit will not increase your available advance amount.
Important notes on accrual:
- Accrued amounts under $50 will display as $0 in the app.
- Once you reach $50 in accrued earnings, the app will show your available balance.
- Accrual continues until you reach your tier's maximum limit.
Q: Can I cancel my advance?
A: Once an advance1 has been processed, it cannot be canceled. However, you can repay the advance immediately after receiving the funds in your Gusto Spending account.2
Q: Why do I show $0 available when I know I have completed shifts?
A: If you're seeing $0 available in your app despite having worked shifts, there are a few different things that can cause this. To be eligible for an advance1:
- You must have accrued at least $50 in eligible earnings. (See the FAQ above titled “How are my earnings calculated?”) Any accrued amount below $50 will display as $0 in the app. Once you reach the $50 threshold, your available balance will be visible if all other criteria are met.
- You must have an open Gusto Wallet Spending account2 in good standing.
- You must have received at least 2 paychecks from your employer.
- You must have at least 1 confirmed paycheck since signing up for Clair.
If the above criteria are all met and you still do not see an advance available, reach out to Clair’s support team for Gusto-partnered customers by emailing ondemandpay@getclair.com.
Q: What time zone do all advances update/get repaid?
All earnings are added to your On-Demand Pay accrual at 5pm PST.1
Repayments are taken when you receive your next payroll deposit into your Gusto Wallet Spending account2 or 11:59pm the day of your due date, whichever comes first.
1. On-Demand Pay provided by Clair. Clair 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. Per pay period advance amounts may vary and are based on factors including repayment history. Terms and conditions apply.
2. The Gusto Spending account is issued by nbkc bank, Member FDIC. Gusto is a payroll services company, not a bank. Banking services provided by nbkc bank, Member FDIC.
3. If an employee chooses to have their Advance disbursed to their Gusto Spending account instantly, they will be charged a $4.50 fee per advance. This instant transfer fee will be charged to their Gusto Spending account at the time of disbursement. Instant Transfers typically occur in seconds, but may take up to 30 minutes.
4. Access to Gusto Wallet Premium pricing and features is subject to certain direct deposit eligibility requirements. Go here for more details.
5. Upon taking an advance, your direct deposit settings will be updated. On payday, a portion of your paycheck equal to your advance amount will be deposited into your On-Demand Payment account to repay your advance.
The Gusto On-Demand Payment account is issued by nbkc bank, Member FDIC. Upon enrollment with Clair, this account will be opened.
6. Source.
THIS IS A LOAN SOLICITATION ONLY. GUSTO, INC. IS NOT THE LENDER. INFORMATION RECEIVED WILL BE SHARED WITH ONE OR MORE THIRD PARTIES IN CONNECTION WITH YOUR LOAN INQUIRY. THE LENDER MAY NOT BE SUBJECT TO ALL VERMONT LENDING LAWS. THE LENDER MAY BE SUBJECT TO FEDERAL LENDING LAWS.
