Swag Spend Account and InstaPay: Information for employers and managers | FAQ - Money

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  How will payroll know that an employee has applied for InstaPay?  

InstaPay repayment transactions are automatically highlighted and applied to the payroll ABA file, making it easy to ensure your employee is paid their net balance after the InstaPay fee, and advanced Instapay request deduction amount. (Maximum possible deduction total $254).  All you have to do is not edit the automated balances. The employees pay slip will automatically reflect the InstaPay deduction amount and InstaPay fee as a deduction. Employment Hero is working to improve the notifications to Payroll Admins in advance so you know how many of your team have used InstaPay. 

  Is the Swag Spend Account replacing bank cards/bank accounts? My employees are asking if they still have access to their bank accounts (e.g. CommBank, NAB, ANZ etc.)  

The Swag Spend Account is completely optional. It does not replace any existing employee bank accounts and can easily be used alongside them to ensure employees get easy and fast access to the best benefits and discounts within the in-app and in-store.

Once my employees have ordered the Swag Spend Account Visa Debit card, do we have to start paying salary in the Swag Spend Account only?

The Swag Spend Account is completely optional. It does not replace any existing employee bank accounts and can easily be used alongside them to ensure employees get easy and fast access to the best benefits and discounts within the in-app and in-store.

If your employee wishes to stream their salary between their Swag Spend Account and an existing bank account, direction your employee to this article for instructions.

  Why are employees asked to set up a Swag Spend Account? We wish to switch this feature off.   

Swag Spend Account is the foundation of Employment Hero’s improved employee value proposition (EVP). Swag makes it easier, faster and cheaper to offer Benefits and rewards to your employees both in-store and online. Swag Spend Account is entirely optional for your employees and will unlock a world of new benefits that Swag is working hard to continually improve the range, accessibility and value of, for all employees.

  I do not want my employees using InstaPay. Can I switch it off?  

InstaPay offers a bridge across the payday gap, providing employees access to their money now so they do not have to rely on expensive short-term credit traps like Buy-Now-Pay-Later, credit cards or other short-term loans.

Swag funds the InstaPay requested salary amount in advance to your employees, for a small $4 fee ($3 if using the Swag Spend Account). Your Finance team does not have to fund any of the advance payments, and you do not have to change or alter your payroll or finance processes. With no credit, no interest, no ongoing fees and automatic repayment, InstaPay means employees are at no risk of entering a predatory, compounding, unserviceable debt cycle.

Research shows that employees will use these funds to manage bills and emergencies. We conducted research with 503 employees that represented a cross-section of the Australian demographic (95% confidence, 5% margin of error) on how they would use a product like InstaPay Research shows employees would use InstaPay responsibly:

  • Managing bills (44%)
  • Emergencies (44%)
  • Unplanned expenses (35%)
  • Investing (13%)
  • Improve budgeting (11%)
  • Avoid credit/loans/interest charges (9%)
  • Minimise use of BNPL (7%)
  • Reducing their mortgages via an offset account (3%)
  • All the above (2%)

Author Recommended

Swag Spend Account | FAQ - Money The Swag Spend Account enables employees to manage their money all in one place.

What is InstaPay? | Money InstaPay allows employees to access their money as they earn it to make their money work for them and their needs.

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