Then as programs like employment insurance and the Canada Pension Plan came to be, bringing with them more payroll deductions, the two-week pay cycle was introduced.Check-Stubs was created with the independent worker and small business company in mind.
Initially pay was done weekly, said Ryder. "But by the time you have to do the paperwork and the bureaucracy around that, it started to make more sense to accumulate pay over several days." "We needed a source of revenue to help fight the First World War," he said, and that was the start of income tax, with employers collecting and remitting on workers' behalf. Ryder said the way we do payroll today has roots that reach back to the start of the First World War, prior to which three-quarters of Canadians worked in agriculture and were paid in cash at the end of each day. "People who are living paycheque to paycheque can utilize this type of program to at least prevent themselves from going to a payday loan and getting charged what I think is predatory fees, and it also allows someone to tap into money they've already earned." (Submitted by Adeola Omole)Īdeola Omole, a Calgary lawyer-turned-wealth-coach who is working on her second book about personal finance, said she sees a role for early wage access. Lawyer-turned-wealth coach Adeola Omole said early wage access could help people who might otherwise turn to payday loan operations that charge what she calls 'predatory' interest rates. ZayZoon cuts users off after they've accessed half their pay cheque. "But then you turn that around, will you remember that when it does come time to get paid and you're expecting the $1,000 from your employer, 'oh, I've already withdrawn $400, so all I'm getting is $600?'" Built-in brake systemīut most of these early wage access services have a modest limit - $200, for example - on how much people can get their hands on before payday. Marvin Ryder, an associate professor of marketing and entrepreneurship at the DeGroote School of Business at McMaster University in Hamilton, said he can see this kind of system working as a perk organizations offer to staff. "Honestly, I wish I find the right words to explain the daily fear, anxiety and worry that I have every day I wake up and I'm like, OK, I am so scared to open up my TD statements, my bank account statement because I just don't want to have a reminder," she told CBC Radio.ĭespite those challenges, she said she'd want to learn more about managing her finances before using an early wage access service in order to assure herself it didn't get her in more financial trouble.
#Manpower check stubs software#
"It's an artifact of legacy technology and legacy processes," said Seth Ross, who's in charge of an early wage access service called Dayforce Wallet at Ceridian, a human resources and payroll software company that's based in Toronto and Minneapolis.
The most recent survey from the Canadian Payroll Association found that 36 per cent of respondents said they live paycheque to paycheque.īut proponents of a new approach to payroll called "early wage access" say time's up for the traditional model of getting paid once every two weeks. With sky-rocketing housing costs and inflation at a 30-year high, millions of Canadians find themselves scraping by between pay periods.Īfter rent or mortgage payments are made, groceries and transit passes are bought and other bills triaged based on what's due next, many of us get by on fumes - or credit - until the next payday rolls around.
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