Paychex, which launched real-time payments for payroll only two weeks ago, has already sent $4.6 million in payroll over the RTP® network, according to Paychex, a provider of human resource payroll and benefits solutions to more than 12 million employees.

The rapid growth for real-time payroll signifies the need for faster payment options, especially during the current COVID-19 pandemic. “The ability to pay people as quickly as possible has taken on a new level of importance due to the unique circumstances many businesses are facing in the wake of COVID-19,” said Martin Mucci, Paychex president and CEO, in a press release. “With the introduction of real-time payments, Paychex customers can now pay their employees in a matter of seconds, which can be a critically important capability for employees facing financial hardships as a result of the pandemic.”

Real-time payments for payroll also helps with everyday issues businesses have with normal payroll. For instance, payroll corrections (when the amount is incorrect on a pay statement), or when a direct deposit transaction fails, can be sent over the RTP network as a real-time payroll transactions. “Real-time payments is a perfect fix [for payroll corrections],” said Eric Wade, product manager at Paychex, in a recent Payments Nerds podcast. “This is an example of a solution that didn’t need to look very hard to find an issue that needed to be solved.”

The real-time payments functionality for payroll also provides more options for employers, according to Wade, including:

• Funding payroll on the pay date, rather than a few days before; and
• Same-day payroll, or on-demand pay, where employers pay out employees each day (such as for gig economy workers).

If you’d like to learn more about Paychex’ real-time payroll functionality, listen to this Payments Nerds podcast.