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WorkersChoiceUSA
| Overview
WorkersChoiceUSA
is an Employee Loan Program which allows employees to receive
a guaranteed, low-cost loan through a payroll-deduct process.
The program features have been designed to offer employees an
avenue for cash loans that encourages healthy borrowing practices
– loan limits are capped at a percentage of employee’s monthly
income, the typical repayment term of five months keeps the
payments affordable, and requests must be in a minimum increment
of $500 to better ensure need. These safe-guards help employees
remain successful when choosing to request and receive loans.
Once a company enrolls with us, guaranteed loans are offered
to employees who meet the following criteria: 1) Employed as
regular, full-time for at least six months, 2) Earn at least
$10.00 per hour or $20,000 per year, and 3) Not currently being
garnished more than 25% of their monthly salary. No credit checks,
ever. It’s that simple.
Other features of the program are designed to eliminate costs
and overhead to bring a competitive interest rate to employees
when they receive a loan. Our systems are fully automated and
secure. Whether employees call us to request a loan, or make
their requests online, our system is programmed to notify all
parties electronically. Fund delivery is also electronic, directly
from WCUSA to the requesting employee. Here’s a cost example:
An employee who borrows $1,000 can expect to pay $56 in interest
if paid within their assigned schedule, for a total repayment
amount of $1, 056. Interest is assigned daily, so if the employee
pays their loan early they could pay even less interest. There
is no cost, fee or penalty for early repayment.
To minimize the work required from company staff, we have incorporated
even more features into our program. Loans must be requested
in minimum amounts of $500. Our experience tells us this amount
discourages non-vital borrowing (good for employees) and saves
payroll personnel from making multiple adjustments to borrowing
employees’ payroll accounts (great for payroll). Ideally, a
company’s payroll department will only make one entry in an
employee’s payroll file, per loan. HR and Payroll personnel
will have 24/7 access to their online account and may log in
at any time to view current employee activity and invoice history.
To summarize:
Payroll
will receive an invoice every payroll period. New loans will
need to be entered, and further payroll activity for that
loan is generally not required. The invoice will list new
loans, current loans, and loans that have been satisfied since
the previous invoice. All invoices and invoice history are
available online, 24/7.
Human Resources
will receive an email every time a loan is requested asking
them to login to the company’s account and verify the requesting
employee’s identity, pay rate, hire date and garnishment status.
Once they log in, it is a “One-Click” process – big green
checkmark for “Accurate”, a big red X for “Inaccurate”. Loans
may be verified individually as they come in, or verified
once a day whatever is easiest for the company. This is an
exceptionally quick step.
Whether a company has a history of incurring risk by making
salary loans to employees experiencing a cash emergency,
or of allowing employees to risk their financial future by borrowing
from 401(k) accounts, our service is your solution! WCUSA can
assume those risks, for companies and their workers. There is
no liability to an enrolled company, and no direct costs, ever.
Should a company terminate an employee with an outstanding loan,
we will contact that employee personally to arrange for repayment
– companies never have an obligation to repay any WCUSA loan,
regardless of employee’s hire status.
WorkersChoiceUSA
is a simple program, fully automated for administrative ease
that will add value to any existing benefits package at no cost
to companies. It’s truly a win/win benefit for both companies
and employees that provides financial piece of mind for life’s
cash emergencies. To request an information package with no
obligation, Thankyou!
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About the Program