When employees use the Dayforce Wallet feature of the mobile app, they are presented with their available funds and can request amounts at or below this amount. Available funds are determined by calculation in the Payroll feature, plus any reserve funds that you include in the configuration.
Negative earning amounts are always considered, even if the earning is excluded from On-Demand Pay. This ensures the policy reserve accurately represents what is available for disbursement.
This calculation ensures that employees can only make on-demand pay requests for time worked, and that any deductions and taxes can be covered for a given day.
When an employee makes an on-demand pay request, Dayforce uses the most conservative tax calculations to determine the available amount of pay that can be requested. When an on-demand request is made, Dayforce calculates available fund by using the following tax methods:
- Using the actual tax method
- Using the regular tax method
This conservative approach to calculation reduces the possibility that on-demand pay requests result in negative net pay in the normal pay run.
Important: On-demand pay requests trigger calculations for taxes and deductions to determine the availability of funds that can be disbursed. Dayforce, Inc. will file taxes based on on-demand pay dates but will only collect any liabilities when normal payroll processing occurs.
During the normal payroll commit process in Payroll, Dayforce reduces the employee's net pay by any on-demand payments that they received. The earning statement for normal pay displays a line item for each on-demand payment in the Net Pay section.
Configuration of Limits
You have several options for configuring limits for on-demand pay requests. Some limits that you can configure include (but aren’t limited to):
- The number of requests that employees can make per pay period.
- The number of requests that employees can make per day.
- Which earnings to include or exclude.
Messaging is provided in the Dayforce Wallet app to inform employees when a request is no longer possible.
Example of an On-Demand Pay Calculation
For this example, we take an employee who is in a weekly pay group, earns $1,000 each day in a 5-day workweek (Monday to Friday), and has the following deductions and taxes each pay period:
- Income taxes at 20%
- A fixed pre-tax deduction of $100
- A fixed post-tax deduction of $50
The following screenshot illustrates a workweek in which this employee makes two on-demand pay requests (the two On-Demand Request columns) and also illustrates the final pay for the week (the Normal Weekly Payroll Commit column):