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Financial Wellness for 1099s, Commission and Tipped Employees

By Insights Team on April 14, 2018

To succeed as a business, you have to find solutions for every employee in your workforce.

But finding solutions for every employee in your workforce, especially financial wellness solutions, is complicated. Your different employees—such as your 1099s, tipped employees, and those who are commissioned—all face different hardships, pay schedules, and needs.

Let’s take a look at how PayActiv, an award-winning Holistic Financial Wellness Platform helps every employee experience less financial stress and saves businesses time, money, and effort.

1099s / Independent Contractors

The main struggle for 1099 workers? Zero benefits. All the perks of non-contractual employment that reduce financial stress—401ks, health insurance, the like—are nonexistent.

Thus, 1099 workers are financially strained. The workforce’s loyalty is low. Engagement and productivity are low. This means extremely high costs for businesses from a wide array of consequences such as high turnover and recruitment costs and often poor customer service.

However, PayActiv—a financial wellness platform that includes earned wage access, bill payments, financial counseling, and much more to reduce employee financial stress—is an easy way for employers to offer a great financial benefit to their 1099 workers at zero cost.

With PayActiv 1099 workers feel catered to, even if not “employed”. 1099 workers think:

  • I work for an organization that truly cares about my well-being, even if I’m just a 1099
  • I’d rather work for the company that offers PayActiv, other companies offer zero benefits for their 1099 workers
  • I can finally better manage my monthly expenses—now I can focus on doing a great job


Tipped Employees

Needless to say, one of the biggest struggles for employers with tipped employees is the continuous disruption in cash flow (because you have to tip employees out more often than the payroll schedule). And the biggest struggle for tipped employees? Having to wait for those tips.

PayActiv solves both of these issues by letting tipped employees tip out themselves.

Employees log into the PayActiv mobile financial app and request up to 50% of their net earned income, up to $500. The funds are deposited directly into their bank account—or prepaid or payroll card if they prefer—offering tipped employees control of the tips they rely on to survive.

Employers of tipped employees with PayActiv see:

  • A decrease in the disruption of cash flow—PayActiv fronts the cash to workers
  • A no-cost way to offer daily tips if standard practice is tipping out weekly
  • Enhanced employee engagement, retention, productivity, and workplace morale
  • Better customer service from less stressed employees, meaning more return customers


Commission Employees

Commission employees face a tricky situation. Since they only receive commissions upon completion of a task (such as selling a certain amount of goods or services), employee financial stress can not only be sky high but it’s likely to fluctuate greatly from pay period to pay period.

This kind of severe financial stress puts an intense strain on employees and businesses:

  • 71% of employees say they suffer from financial stress
  • 50% of financially stressed employees spend three hours or more at work each week thinking about or dealing with personal  financial issues
  • 20% of employees miss work to deal with a financial emergency or because of health issues related to financial stress
  • Stress costs U.S. businesses $300 billion per year

What PayActiv offers here is income-smoothing.

Say an employee makes a big sale. Last pay period’s performance was bad on their part so they’re struggling financially. Maybe they’re late on rent or short on their car payment. What PayActiv does is give employees access to their commission, when they make it, before the next scheduled payday—a financial lifeline that helps everyone avoid predatory loans and fees.

In short, there’s no one in your organization that PayActiv can’t help.

PayActiv offers an easy way for employers to cater to every employee in the workforce, reduce the administrative workload, and save thousands every year in reduced turnover and lost productivity from less employee stress. Click here to request a demo or here to learn more.


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