Eliminating payday loans and overdraft fees for 2.5MM employees, with Matt Kopko of DailyPay
The Fintech Blueprint
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Is It the Reason That We Have a Regular Pay Cycle?
Income tax system started forcing employers to accommodate for withholding of taxes, which force them to start paying on a less frequent pay cycle. And so what companies have found over the past decades is it's most efficient to run pay roll once or twice a month. If you're working and you don't get paid, actually the exposure is on you, cause you're effectively lending money to your employer. They owe you the salary. You need the salary cause you've at flowing expenses, but you're lending money toyour employer.
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