Earned wage access (EWA) allows you to access your earned income at a time that’s right for you, not your employer. No interest required on the money you’ve earned, and you're at liberty to use it before your scheduled pay date. For this reason, EWA is a better and safer alternative to overdrafts and payday loans.
EWA is a payday loan alternative, but it’s definitely not a loan. That’s because employees only have access to the pay they earned, but only after they’ve worked for it. They’re simply getting it earlier than the “normal” pay day. Plus, there aren’t any tax implications to EWA for employees or employers.
Earned Wage Access (EWA) is not a loan, hence no interest rate to pay. EWA is a viable alternative to traditional loans from the banks, loan sharks, etc. EWA is a way for businesses (employers) to solve key personnel issues for their employees.
1. SIKAMASTER EWA
Our EWA service has helped many avoid taking out payday loans or interest-bearing salary advance from their banks because they can get their money when they need it with us at the click of the button and not fill out any useless forms.
This can be incredibly helpful when emergency expenditures arise and waiting for your next paycheque means having to borrow money to cover unexpected expenses. While payday loans may seem like an appealing option, they can be a troublesome solution because you’d be borrowing against money you haven’t yet earned.
Then, that money is then deducted from your next paycheque as the loan repayment. But what happens if your next paycheque is too low? You end up extending the loan by borrowing more money. It’s a cycle that can be hard to break out of.
2. EWA IS NOT A CREDIT CARD
When enrolled in our EWA, you will not pay interest on the money you access before your pay date. This is because you are not borrowing your own money, you are just using it before your employer’s scheduled date of pay.
Additionally, EWA can help improve budgeting, especially for big-ticket items like rent, mortgages, and car payments. Knowing your spending power in real-time is a huge advantage when planning out your monthly bills - you’ll know exactly what you have to spend, save, and use on any given day.
This will be especially helpful when birthdays, weddings, and even holidays are on the horizon. You can get your bills paid on time and then save efficiently for expenses that are not part of your monthly routine.
3. EWA DOES NOT PERPETUATE DEBT CYCLES
In a perfect world, we can tell creditors when we want to pay them back without incurring interest. We all know, however, this is not the case.
Have a bill due on the tenth of the month but don’t get paid until the fifteenth? Because you have access to your own money when you need it, EWA can help you avoid late fees and interest charges by giving you your money in advance of when you need to pay your bills!
4. EWA DOES NOT DISCOURAGE FINANCIAL WELLNESS
Getting ahead of interest charges and late fees is an important first step toward financial wellness but it is not the only way EWA can help.
Practicing financial wellness means you are:
- Spending within your means
- Prepared for emergencies
- Able to access knowledge and tools to help you make informed decisions
- Planning for your future
-
Knowing when and how much money you can use is a huge benefit to using EWA. When you’re aware of what you owe and what you have leftover, you are better equipped to plan for daily, monthly, yearly, and even your retirement goals.
Not only that, but many feel motivated to work even more and take less time off because they can see the results of their labour almost instantly.
In conjunction with responsible spending and savings, EWA empowers you to get control of your budget so you can maximize your earning (and spending) power.
5. WHAT EARNED WAGE ACCESS (EWA) IS NOT
It is not meant to put users in a cycle of loans but to offer a safe alternative so they can avoid them.
• It is not difficult to set up.
• It is not an advance on future earnings.
• No interests are charged.
• It is not daily payroll or replacing payroll.
RELATED PAGES