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IRIS and Revolut hail payroll partnership benefits

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A new tie-up between IRIS and fintech firm Revolut hands employees early access to their salaries and gives Revolut’s business customers access to IRIS’s Staffology payroll system.

7th Mar 2022
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Announced last week, the partnership between the two software houses will give employees of companies using the IRIS Cascade HR and payroll system access to Revolut’s ‘On-Demand Pay’ product. It also gives Revolut Business customers access to IRIS’s Staffology Payroll solution for instant payroll processing. 

Early access to earned wages

Some 1,200 companies that use IRIS Cascade can opt to allow employees access to Revolut’s On Demand Pay tool to draw down part of their earned wages in advance.

Launched in August 2021 for UK and Ireland users, Revolut On-Demand Pay tool plugs into an employer's payroll system and gives employees the ability to instantly access a portion of their salary as they earn it for a flat fee - with no charge for employers.

Employees can view their available accrued earnings and select the amount they want to withdraw directly into their main account, allowing them to access their salaries earlier in the month with no impact on their credit score. No specific details of what proportion of accrued earnings employees can access were mentioned in the announcement but according to Revolut’s website, users can withdraw up to 50% of what they’ve earned.

The tool is similar to the ‘get paid early’ feature from neobank  Monzo, which allows individual account holders access to salary payments at 4pm the day before payment falls due for no fee.

In a release accompanying the announcement, IRIS said the solution provides employees with a “lower cost alternative to credit cards or payday loans they might otherwise rely on to help with any cashflow problems. to cover expenses or necessary costs and avoid getting into debt”.

David Turner, chief marketing officer at IRIS Software Group comments, “Employees increasingly want access to their earned wages on demand and most employers want to give them that flexibility. That’s why we are pleased to help our clients improve financial wellbeing through Revolut’s On-Demand Pay product.

Emil Urmanshin, product owner and CEO office at Revolut commented: “With up to 20% of working adults in the UK having less than £100 in savings, many are extremely vulnerable to financial changes or unforeseen costs - which has been exacerbated by the pandemic. Salary advance is the logical solution in giving our customers the flexibility they need to reduce debt, manage sudden financial surprises and access money they have already earned without huge interest rates which can quickly spiral out of control.”

Revolut Business and Staffology

The partnership also gives Revolut Business customers access to cloud HR and payroll software Staffology by IRIS.

The brainchild of former Kashflow founder Duane Jackson, Staffology was acquired by IRIS in January 2021 for an undisclosed fee. Launched in 2018, Staffology was founded after Jackson flagged a ‘lack of viable alternatives’ in the cloud payroll field.

As part of the IRIS-Revolut tie-up, Revolut Business customers are promised “complete payroll at the push of a button” which will “free up admin staff to focus on more value-adding activities that can support business growth”.

IRIS CMO David Turner said the firm was “pleased to expand the payroll processing tools we offer to Revolut Business customers with Staffology by IRIS, which enable them to process payroll in ways that meet the changing preferences of today’s workforce.” 

According to Revolut’s latest results, the fintech now has more than half a million SMEs as business customers

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By Hugo Fair
07th Mar 2022 19:01

This is NOT a method of achieving "salary advances" ... if it was it would fall foul of RTI since HMRC are clear that a salary advance (of the good old-fashioned variety paid by a benevolent employer to an impoverished, and probably underpaid, member of staff) triggers the 'by or before' need to submit an FPS.

Once you strip away the marketing jargon this is just another payday loan facility that targets those who are financially vulnerable. As the CEO office at Revolut hints, they are interested in the “up to 20% of working adults in the UK having less than £100 in savings"!

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