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Rain's Employer Payroll Model: Empowering Financial Wellness

Rain provides an Earned Wage Access solution through an Employer Payroll Model designed to uplift your employees while boosting your company’s operational efficiency.
October 11, 2023

At Rain, we recognize the role that a happy and financially secure workforce plays in the success of a business. That's why Rain provides an Earned Wage Access solution through an Employer Payroll Model—designed to uplift your employees while boosting your company’s operational efficiency.

What is the Employer Payroll Model?

Our Employer Payroll Model is the responsible approach to Earned Wage Access (EWA), designed to seamlessly integrate into your existing payroll processes. Rain emphasizes the safety and ease of an employer's wage distribution process. Our exceptional service reduces risks, simplifies procedures, and increases transparency, cultivating a trusting relationship between employers and their staff. Your employees reliably gain access to a portion of their earned wages in advance, eliminating the reliance on traditional pay cycles and easing financial stress.

How Does It Work?

Integration: We work closely with your payroll system to seamlessly integrate Rain into your existing setup. There's no need for additional software or complex adjustments. Rain works with each employer to create a predictable payment cadence for ingesting Rain’s EWA Adjustment File for your earned wage payments at the end of each pay period. This cuts down on your admin work and lets your team handle EWA transactions as a part of your regular payroll process - without demanding employees to make any awkward changes an “intercept” approach demands.

Employee Access: Your employees can easily access their earned wages on-demand through our user-friendly app. This puts them in control of their finances, enhancing their financial wellness. Also, Rain is only paid by the employer. Employees don’t have to worry about owing Rain any money for the earned wages they receive through the service. With Rain’s model, the employer is in charge of paying employees on schedule.


Why Choose Rain’s Employer Payroll Model?

Minimal Data Collection

Rain only collects 7 fields of employer data. The sensitive data stays within the employer’s systems.

Employer-Facilitated Payment

Rain is paid directly from employer-partners, not their employees.

Disclosure of Earned Wage Payments

When the employer-partner gets Rain's EWA Adjustment File, they can match the earned wage payment with the employee's pay statement. Disclosing Rain’s earned wage payment cuts down on employees asking the employer’s payroll team for explanations.

Lower Risk Profile

Rain’s model minimizes risks to the employer by simplifying data requirements and directly working with the employer’s existing payroll systems.  

What About the Intercept Model?

An “intercept” flow model uses a “for the benefit of” (FBO) account created by the EWA provider. This account takes the employee's whole paycheck so the provider is first to get their money back along with a fee, and then the employee’s remaining amount of earnings is pushed out to the employee’s bank account. While the intercept model may provide some degree of access to earned wages, it often involves deductions that confuse employees and add unnecessary complexity to payroll. Transaction flows from the FBO account may result in discrepancies between the employee’s pay statement, relative to the final amount arriving in the employee's checking account–leading to confusion and mistrust.

In this so-called “hands-off approach” of intercepting an employee’s whole paycheck, there is no visibility for the employer or the employee of what has been intercepted from the employee’s paychecks. Moreover, because the EWA vendor directly recovers funds from the employee, this model isn’t compliant with CFPB guidelines. Many early adopters of the intercept model are now switching to Rain’s Employer Payroll Model.

Choosing the right EWA provider is a significant and comprehensive decision. Should you have any inquiries about Rain's Employer Payroll Model or require further details, don't hesitate to contact us. Our dedicated Rain team is on standby to support you. Together, we can craft a seamless, safe, and effective Earned Wage Access system centered on your employees’ financial well-being.

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