It turns out that its only in the USA where payroll is commonly paid more frequently than once per month. As a business owner, I understand the benefits of monthly payroll, as payroll takes time and effort to process, as well as cash in the bank.
That said, most likely this is soon to be history, as online services like Gusto make paying payroll just a few clicks of effort, including all the calculations, the forms, the filings, and the payments.
Given that, and given the new instant bank-to-bank payment systems launching around the world, I suspect we’ll not only see payroll become more frequent, but I’ll predict that a few pioneering companies will start paying payroll weekly, if not daily.
I don’t expect daily payroll was on the list of use cases for FedNow, but it is an unintended consequence.
