QuickBooks recently announced a new feature called On-Demand Pay that will be added automatically to QuickBooks Payroll beginning April 11, 2026.
This feature allows employees to request early access to a portion of their earned wages through the QuickBooks Workforce app. The service is provided through a partnership between QuickBooks and a financial technology company called Clair.
This program operates through QuickBooks Workforce and Clair directly. Employers and accountants do not approve or issue employee advances, and your payroll processing, tax filings, and accounting records should not change as a result of this feature.
Because this feature will be enabled automatically, so we want our payroll clients to be aware of the change and understand how it works.
What Is On-Demand Pay?
On-Demand Pay allows employees to access a portion of wages they have already earned before their scheduled payday using the QuickBooks Workforce app.
The service is provided through QuickBooks’ partnership with Clair, a financial technology company that offers earned wage access services.
Employees who qualify may request early access to their earned wages directly within the Workforce app.
What This Means for Employers
If the feature is enabled in your QuickBooks Payroll account, eligible employees may request advances through QuickBooks Workforce.
Important points for employers:
- The advances are issued by Clair’s partner bank, not by the employer
• Employers do not fund the advances
• Employers do not approve employee requests
• The feature does not change payroll processing or payroll tax reporting
From an employer perspective, payroll continues to run normally.
How the Employee Advance Works
Employees who qualify can request an advance on wages they have already earned through the QuickBooks Workforce app.
Funds are issued by Clair’s banking partner and are typically delivered in one of two ways:
- Standard transfer (1–3 business days) – no fee
• Instant transfer – currently a $4.99 fee
Employees choose the transfer option when requesting their advance.
To participate in the program, employees must also add Clair as a direct deposit account within their QuickBooks Workforce profile. This allows Clair to deposit the advance and automatically recover the funds when the employee’s next paycheck is issued.
The advance is then repaid automatically from the employee’s next paycheck.
Employers are not responsible for issuing the funds or collecting repayment.
Things to Be Aware Of
Although this program is designed to provide employees with faster access to earned wages, it is important for employers to understand that:
- Employees may see fees if they request instant transfers
• Clair will receive some company, payroll, and employee information in order to provide the service
• Not all employees will qualify to use the feature
As with any new payroll feature introduced by QuickBooks, businesses should review the details to determine whether it is appropriate for their workforce.
Can Employers Turn It Off?
Yes.
Although the feature may appear automatically, employers can disable On-Demand Pay in their QuickBooks Payroll settings if they prefer not to offer this option to employees.
Questions?
If you have questions about the new On-Demand Pay feature or would like assistance reviewing your payroll settings or opting out, please reach out to our office.
Our team is happy to help you determine what works best for your business.
QuickBooks Support Article
For the official QuickBooks documentation explaining this feature, see:
