DailyPay uses the Net Earnings file primarily for two distinct purposes:
- To set an employee’s advance rate
- For pre-settlement: The Operations team uses the Net Earnings file to pre-settle (pre-fund) each employee paycheck the evening before payday. We take the net earnings amount reported for each employee, deduct the amount that the employee transferred using DailyPay during the pay period, and pay the remainder to the employee.
We request that the net earnings file includes information for all your eligible employees, even if they have not yet enrolled in DailyPay, to ensure the most thorough reporting. Since this data is crucial to calculate an employee’s payday amount, if employees are missing, they risk receiving delayed pay on payday.