By Piers Mainwaring, CIO at Everee
Work has changed. Payroll hasn’t kept up.
People can split a dinner bill in seconds. They can sell something online and get paid instantly. They move money between apps and accounts without even thinking about it.
But when they finish a shift at work? Payroll still tells them to wait until next Friday.
It doesn’t line up. Today’s workforce isn’t built solely around a predictable 9-to-5 schedule. It’s flexible, shift-based, and increasingly decentralized. Workers pick up hours when they can. They move between clients or job sites. They expect the systems that support them to move as quickly as they do.
And yet, payroll still runs on fixed cycles, built for an era when everyone worked the same hours and got paid twice a month.
This mismatch creates friction, not just for workers but for the businesses that employ them. Delayed pay drives churn. Manual reconciliation slows down operations. Legacy systems become blockers, not enablers.
Meanwhile, expectations have shifted. Faster pay isn’t just a perk; it’s becoming an expectation.
That’s why we built Everee.
We believe payroll should move at the speed of work. Not just faster payouts but true, compliant, gross-to-net payroll that runs in real time, without disrupting how the rest of your business operates.
In this article, I’ll break down what real-time payroll really means, why most solutions are, and how Everee’s platform is built to serve the businesses and workers moving faster than ever before.
What is real-time payroll today?
Why most “real-time” solutions aren’t actually real-time
In a world where money can move instantly, you’d think payroll would be just as fast. But most so-called “real-time” solutions are workarounds, not actual real-time payroll.
The most common example is earned wage access (EWA). These products let workers pull a portion of their wages before payday. On the surface, it feels like progress: open an app, tap a button, get paid. But behind the scenes, these are advances not processed payroll. Taxes haven’t been calculated. Deductions haven’t been applied. The employer still has to reconcile it all at the end of the week.
Other offerings include off-cycle pay runs or early direct deposit options. But again, these are layered onto legacy systems. They don’t speed up payroll itself; they just add another layer of complexity around it.
At best, these tools offer the appearance of speed. But the payroll engine is still running in weekly or biweekly cycles, which means employers are left managing exceptions, handling funding gaps, and dealing with compliance after the fact.
The result? More work, not less. And a pay experience that still feels slow, especially when compared to how easily money moves in the rest of a worker’s life.
This is why real-time payroll needs a more honest definition. It’s not about letting someone get money faster through an app. It’s about running full payroll, taxes, deductions, and all at the same pace that work happens.
And that takes more than a feature. It takes a complete rebuild of how payroll systems work.
What is real-time payroll, really?
A shift in infrastructure, not just access
Real-time payroll isn’t just about letting someone access earnings faster. It’s about rethinking how payroll is processed from the ground up.
At its core, real-time payroll means this: every time someone works, payroll is run. Fully. That means gross-to-net wages are calculated on the spot, taxes are withheld in real time, and the paycheck, however often it happens, is final and compliant.
There’s no “we’ll sort it out on Friday.” No lump sum at the end of the week to clean up earlier advances. No waiting on downstream systems to catch up. Payroll is accurate and complete the moment it’s paid.
To make that work, a few things need to change:
- Continuous payroll engines
Payroll has to run in real time, not in batches. Hours, rules, and rates are ingested instantly and processed the moment a job ends. - Cumulative taxation
Tax withholdings need to adapt to variable pay cycles. Cumulative taxation ensures accuracy, no matter how frequently someone gets paid. - Translation layers for downstream systems
Back-office operations still rely on consistent schedules. Real-time payroll needs to bridge the gap, so you can pay daily but report weekly. - Funding that moves at the same speed as pay
Daily pay can’t work if there’s no capital to support it. Real-time payroll needs real-time funding behind it. - Automation with controls
Payroll teams need guardrails, not surprises. Real-time systems must offer manual controls and automation that can scale over time.
When these elements come together, you get a payroll system that keeps pace with your workforce and fits neatly into the rest of your business operations.
How Everee’s real-time payroll works
Built to handle the speed of work without breaking the back office
Everee’s real-time payroll system was built from the ground up to do payroll in real time. Here’s how:
1. Continuous payroll engine
We can calculate full gross-to-net wages each time a shift ends. Tax deductions are applied instantly. Pay is final: no cleanup, no catch-up.
Our engine translates high-frequency pay events into your normal business cadence. Whether you report weekly, invoice monthly, or run GL entries biweekly, we keep everything aligned.
2. Cumulative tax calculation
We use a U.S.-recognized method called cumulative taxation, which applies the correct tax rate over time. This ensures each payment is accurate and final no matter how often someone gets paid.
3. Real-time funding with Flex Credit
If you’re billing clients on 30-day terms, paying workers daily creates a cash gap. Everee solves this with Flex Credit, a revolving line of credit that funds payroll in real time. You repay when receivables come in.
4. Configurable automation and admin controls
You can start with manual approvals and shift to full automation over time. Admins can “keep two hands on the wheel” until they’re ready to let it run.
5. Flexible time system integration
We ingest time data from almost any system, evaluated or raw, and we don’t require customers to change tools. You use what works, and Everee does the rest.
Who it’s for
Purpose-built for flexible workforces
Real-time payroll is built for teams where the pace of work doesn’t match the pace of traditional payroll. We serve:
Staffing firms
Pay temp workers at the end of every shift. Keep your invoicing cycle. Stay compliant across multiple states and clients, all from one platform.
Gig workforces and on-demand labor platforms
Offer a branded, instant-pay experience. Let workers pick how often they get paid. Integrate via API to make payroll feel native to your app.
Businesses moving 1099s to W-2
Keep the flexibility of gig-style work, while shifting to compliant employee status. Pay frequently without losing control or overpaying taxes.
PEOs, EORs, and workforce platforms
Differentiate your offering. Provide embedded payroll options that actually meet the expectations of modern workforces: fast, flexible, and compliant.
The payoff
Why real-time payroll isn’t just a worker perk. It’s an operational advantage
For workers:
- Instant wages after every shift
- Transparent, predictable earnings
- Better financial stability and retention
- Choice of payment method (bank, card, wallet)
For employers:
- Faster hiring and improved retention
- Reduced payroll errors and admin overhead
- Real-time visibility into labor costs
- Cash flow flexibility with built-in funding
- No disruption to accounting or client invoicing
The road ahead
Real-time payroll isn’t just about paying faster; it’s about removing the structural barriers that make payroll slow, manual, and inflexible. At Everee, we’re building toward a future where payroll doesn’t require trade-offs between speed, compliance, and control. That starts with more upstream automation. Time capture, classification, and shift approvals still create bottlenecks in many organisations, so we’re focused on making that data flow seamlessly into payroll without manual cleanup or delays.
We’re also investing in deeper integrations. Whether you’re running workforce software, vertical platforms, or embedded HR tools, we want real-time payroll to plug in cleanly and work natively. Our platform is built API-first and is fully embeddable, whether you’re offering payroll as a feature or need it as core infrastructure.
And as regulations evolve, we’re continuing to lead on compliance. Multi-state payroll, tax withholding, garnishments; it’s all getting more complex, not less. That’s why we’re building for the long term: not just to keep up, but to set the standard for how compliant payroll can happen at scale and at speed.
At Everee, we believe payroll should match the pace of your workforce, and we’re building the infrastructure to make that a reality for the businesses that need it most.
Want to see Everee’s real-time payroll platform for yourself? Book time with us.
Frequently asked questions about real-time payroll
What is real-time payroll?
Real-time payroll refers to the ability to calculate, fund, and deliver wages as soon as work is complete, not at the end of a fixed pay period. Unlike traditional payroll systems, which process pay in weekly or biweekly cycles, real-time payroll processes gross-to-net wages immediately, including taxes, deductions, and compliance.
How does real-time payroll work?
Real-time payroll uses a continuous payroll engine to calculate pay as work is completed. It applies tax withholdings through cumulative taxation, ensures compliance in real time, and delivers final pay without needing later reconciliation. Some systems, like Everee, also provide real-time funding (e.g., Flex Credit) to support fast payouts even when client billing operates on a delay.
Why is real-time payroll gaining popularity?
The shift to flexible and gig-style work has made traditional payroll cycles feel outdated. Workers expect faster access to their earnings, and employers are under pressure to attract and retain talent in competitive labor markets. Real-time payroll meets both needs, offering speed without sacrificing control or compliance.
Who benefits the most from real-time payroll systems?
Businesses with hourly, shift-based, or distributed workforces benefit the most. That includes staffing firms, on-demand labor platforms, delivery and transportation companies, businesses converting 1099 workers to W-2s, and PEOs or EORs that need to support variable pay schedules. Workers in these environments often face cash flow challenges, so fast, accurate pay builds trust and loyalty.
Is real-time payroll the same as on-demand pay?
No. On-demand pay typically gives workers early access to estimated wages through advances or third-party apps. Real-time payroll actually runs full payroll (including taxes and deductions) each time work is completed. The result is compliant, accurate, final pay—not just early access to partial earnings.
How is real-time payroll different from traditional payroll?
Traditional payroll runs in scheduled batches: weekly, biweekly, or monthly. It’s built around predictable work hours and pay cycles. Real-time payroll runs continuously, triggered by completed work. It aligns pay with the pace of modern work and eliminates the need to wait for payday or handle off-cycle corrections.
What are the pros and cons of real-time payroll?
Pros:
- Workers get paid faster, improving retention and financial wellbeing
- Employers reduce payroll admin and manual reconciliation
- Greater visibility into labour costs in real time
- Compliance and automation reduce downstream errors
Cons:
- May require funding support if receivables lag (solved by Everee’s Flex Credit)
- Requires modern infrastructure, which some legacy systems can’t support
Is real-time payroll compliant with labor laws?
Yes, when done correctly. Real-time payroll must comply with tax withholding rules, wage garnishments, and state-level employment laws. Platforms like Everee are built to support these requirements across all U.S. states, using methods like cumulative taxation and automation to ensure each pay run is compliant and audit-ready.
What industries are adopting real-time payroll the fastest?
Industries with flexible or variable labor, including healthcare staffing, light industrial, logistics, delivery, and gig economy platforms, are leading adoption. These businesses face high turnover and shifting schedules, making fast, accurate pay a competitive advantage.
How secure are real-time payroll systems?
Security is a core component. Real-time payroll platforms are held to high standards for data protection, encryption, and compliance, especially when handling personal and financial information. Enterprise-grade systems like Everee are built with secure APIs, role-based access, and robust audit trails.
Does real-time payroll cost more to implement?
It depends on the provider and use case, but many businesses find that real-time payroll actually reduces costs over time. By automating processes, reducing errors, and improving retention, it offsets admin overhead and churn. With Everee, you don’t need to change your timekeeping tools or wait for receivables, which keeps implementation simple and cost-effective.
Is real-time payroll the future of workforce compensation?
For flexible and fast-moving workforces, yes. As workers demand faster access to pay and businesses look for ways to streamline operations, real-time payroll offers a path forward. It’s not just about speed; it’s about building payroll infrastructure that actually fits the way people work today.
How do I get started with real-time payroll for my organization?
Start by assessing how your workforce is structured. If you rely on hourly, shift-based, or project-driven work, real-time payroll could be a strong fit. From there, look for a provider (like Everee) that can handle real-time pay processing, cumulative taxation, funding, and compliance. Everee supports both W-2s and 1099s, integrates with your time systems, and lets you run payroll on your terms without disrupting your accounting or cash flow.
You’ve seen the headaches that weekly payroll creates, the delays, the exceptions, the cleanup. Want to see a version that doesn’t fight you back? Book a demo.