Question 1

What is Paidly?

Accepted Answer

Paidly is a dual-sided platform that enables employers to easily offer tax-advantaged student loan repayment and 529 college savings benefits to their teams. At the same time, it serves as a secure crowdfunding app where friends and family can directly contribute toward paying down an individual's student debt or help them build up an education fund.

Question 2

Who can use Paidly?

Accepted Answer

Paidly is built for both companies and individuals. Companies can offer and manage student loan repayment and 529 educational savings contribution benefits. Individuals with student debt or 529 savings plans can create personal accounts to join an employer benefit and/or crowdfund.

Question 3

Is Paidly only for student loans?

Accepted Answer

No, Paidly is for both student loans AND state-sponsored 529 educational savings plans. Employers and donors can contribute directly to either of these accounts.

Question 4

Are contributions through Paidly taxed?

Accepted Answer

It depends on the type of account and the state sponsoring the account. The Federal Government, through the CARES Act, allows employers to contribute up to $5,250 tax-free to student loans each year, meaning the money paid is considered tax-free for both the employee and the employer. Taxation of employer and donor contributions toward 529 educational savings plans varies by state.

Question 5

How much does Paidly cost?

Accepted Answer

Our pricing and fees depend on whether you're starting an employer benefit or crowdfunding. See our Pricing page for more information.

Question 6

How do I access Paidly?

Accepted Answer

Paidly can be accessed through our website at https://app.meetpaidly.com/ and via our mobile apps, available for download on both iOS and Android devices.

Question 7

Does Paidly verify loan and 529 savings information?

Accepted Answer

Yes, we verify all loan and savings accounts before allowing contributions to be made. When an individual enters their financial information and uploads their latest statement, the loan and loan servicers are reviewed and verified. Verification includes confirming that an active loan exists and that the loan is under the individual's name.

Question 8

How does Paidly ensure privacy and compliance when handling financial information?

Accepted Answer

Paidly prioritizes privacy and compliance through every step of the process. Our platform was built with security in mind, utilizing encryption and secure processes to protect personal information. Additionally, our team conducts due diligence to ensure that all employer contributions are made in accordance with applicable laws and regulations, relieving employers of the complexity involved in managing contributions to student loans and state-sponsored 529 plans. For more information on our security measures, see our Security page.

Question 9

Can I use Paidly for individual support AND employer benefits?

Accepted Answer

Yes! Paidly is designed to maximize support for education savings and loan repayment. Using Paidly for both individual gifts and employer benefits is a smart strategy. Employer plans come with extra perks like waived usage fees and no minimum balance, making it even easier to reach your educational goals when combined with contributions from friends and family.

Question 10

How do I contact customer support?

Accepted Answer

Paidly offers real customer support to all users of the platform. Simply submit a ticket or email happiness@meetpaidly.com and someone on our team will assist you within 48 business hours.

Question 11

Are there any contracts? What is Member Pricing?

Accepted Answer

There are no contracts with Paidly. Member pricing allows companies the choice to pay for use of the platform monthly for more flexibility or annually for reduced costs. Member pricing is not a contract -- you can cancel at any time.

Question 12

How does payment work?

Accepted Answer

All fees are pulled from the employer's designated bank account along with the contribution amount for each employee. Funds are transferred to Paidly on the 1st of each month, or the first business day. Loans or savings will be paid and electronically acknowledged on or before the 15th of each month.

Question 13

What is the minimum amount an employer can contribute?

Accepted Answer

The minimum contribution amount through Paidly starts at just $25, making it an accessible option for employers of all sizes to support their employees' loans and education savings.

Question 14

What happens to refunds?

Accepted Answer

Refunds due to overpayment are returned to the contributor.

Question 15

How soon can employers start making payments?

Accepted Answer

The 1st of each month. Employees will only receive the benefit if they complete their own account set-up.

Question 16

When will payments reach student loan or 529 savings accounts?

Accepted Answer

Payments are sent on or before the 15th of each month. Servicers typically process payments within 10 days, but every system is different. If recipients don't see the payment by the end of the month, they should reach out to their servicer directly. Individuals part of an employer benefit will receive email notifications once payment has been submitted by their employer and again once payment has been sent to their account. Individuals crowdfunding will have payment sent on the 15th of the month as long as their balance has reached $25. Donations typically take 3 business days to fully process. Donations processed after the 15th will be included in the following month's payment cycle.

Question 17

What does it mean to select a loan or 529 account as my Primary?

Accepted Answer

Paidly only makes payments toward one account -- "my Primary" allows recipients to choose which account will receive payments in the case of multiple linked accounts.

Question 18

Can I change which account contributions go toward?

Accepted Answer

Yes. You can change your Primary loan or 529 account at any time before the monthly payment deadline (the 15th of each month).

Question 19

Is Paidly only for student loans?

Accepted Answer

Through Paidly, you can simultaneously offer and manage both student loan repayment and 529 educational savings contribution benefits.

Question 20

Are employer contributions to student loans taxed?

Accepted Answer

The Federal Government, through the CARES Act and OBBBA provisions, allows employers to contribute up to $5,250 tax-free to student loans each year, meaning the money paid is considered tax-free for both the employee and the employer. While Paidly facilitates payments, managing IRS Section 127 documentation rules and tax compliance is entirely up to the employer and their tax advisors. Tax advantages of employer contributions toward 529 educational savings plans vary by state.

Question 21

How much does Paidly cost?

Accepted Answer

There is a one-time setup fee of $250 for all companies new to Paidly. Otherwise, pricing depends on whether you're planning to send contributions on a recurring or on-demand basis, and whether you want to pay monthly or annually. See our Pricing page for more information.

Question 22

Does HR have to collect or monitor employees' private financial data?

Accepted Answer

No. Paidly handles gathering and verifying employee financial information, maintaining security and privacy for everyone involved. We work directly with servicers to keep exact balances hidden. HR simply sees that the payment was processed and receives standard reporting, eliminating all privacy risks.

Question 23

How do I start a Paidly benefit and how long does setup take?

Accepted Answer

You will need three things to get your benefit started: 1. Your company information, including the entity name and Federal Tax Identification Number (EIN) 2. Your Bank information, including the bank name, account type, account number, and routing number 3. Your list of eligible employees, including the amount you’d like to contribute toward employees. It generally takes less than 5 minutes to set up an account.

Question 24

How do employees join the benefit?

Accepted Answer

Employees are invited via email and create their own accounts. During account setup, they'll provide their financial information for verification by Paidly. Employees can use Paidly's dashboard to monitor benefit payments or crowdfund their accounts at app.meetpaidly.com or through our downloadable app for iOS and Android devices.

Question 25

How does Paidly work with 529s?

Accepted Answer

Employers can make contributions to their employees' state-sponsored 529 plans directly through Paidly. We manage the process from contribution collection to ensuring the funds are deposited into the correct 529 accounts, simplifying the process for both employers and employees.

Question 26

Are there any tax benefits for employers contributing to 529 plans through Paidly?

Accepted Answer

While contributions to 529 plans are not tax-deductible at the federal level for employers, many states offer tax incentives to employers who contribute to 529 plans. Employers are encouraged to consult with a tax professional to understand the specific benefits available in their state.

Question 27

Can an employer contribute to both a student loan and a 529 plan for the same employee?

Accepted Answer

Currently, Paidly does not support simultaneous contributions to both a student loan repayment plan and a 529 college savings plan for the same employee. Employees will need to choose which account they would like to receive their employer’s contributions. This feature ensures a streamlined and focused approach to supporting either immediate student loan relief or future education savings based on individual preferences and needs.

Question 28

What types of 529 plans does Paidly support?

Accepted Answer

Paidly supports all state-sponsored 529 plans. Our platform is designed to work seamlessly with these plans, making it easy for employers to contribute to their employees' future education savings.

Question 29

Can employees choose their own 529 plan or must it be through a specific state?

Accepted Answer

Employees can choose any state-sponsored 529 plan. Paidly's flexible platform allows contributions to any of these plans, regardless of the employee's or employer's state of residence, ensuring wide accessibility and convenience.

Question 30

What is the difference between a Paidly recurring benefit and an on-demand benefit?

Accepted Answer

A Paidly recurring benefit is scheduled to send payments on a regular basis: annually, quarterly, or monthly. An on-demand benefit allows you to send one-time payments on your schedule. On-demand lets you redirect bonuses like sign-on, referral, or annual compensation, as well as PTO buybacks, toward employee student loans or 529 savings plans as needed.

Question 31

Can I add an on-demand benefit to my existing Paidly recurring benefit?

Accepted Answer

Yes! Paidly allows for multiple benefit plans to be created for a company. Employers can easily take advantage of our recurring student loan benefit alongside Paidly on-demand payments.

Question 32

Do I need a Paidly recurring benefit to start an on-demand benefit?

Accepted Answer

No. Paidly on-demand payments can be used as a stand-alone benefit for one-time payments only or as an add-on student loan benefit feature.

Question 33

Are Paidly on-demand benefits taxed?

Accepted Answer

The Federal Government, through the CARES Act and OBBBA provisions, allows employers to contribute up to $5,250 tax-free to student loans each year, meaning the money paid is considered tax-free for both the employee and the employer. While Paidly facilitates payments, managing IRS Section 127 documentation rules and tax compliance is entirely up to the employer and their tax advisors. Tax advantages of employer contributions toward 529 educational savings plans vary by state.

Question 34

How much does an on-demand benefit cost?

Accepted Answer

There is a one-time setup fee of $250 for all companies new to Paidly. On-demand payments incur a 3% fee per employee (minimum $15), either covered by the employer or deducted from the payment.

Question 35

Can PTO buybacks be put toward employee accounts?

Accepted Answer

Yes! You can use an on-demand benefit to convert accrued, unused PTO into direct payments toward employee student loans or 529 educational savings plans.

Question 36

How can an employer help with my student loans?

Accepted Answer

Employer Student Loan Repayment or employer student loan assistance is a benefit where the employer makes payments to pay off employee student debt. An employer can make up to $5,250 in student loan payments tax-free each year. Paidly lets employers make payments to student loan lenders directly.

Question 37

How do I start receiving employer contributions?

Accepted Answer

There are three steps to joining a Paidly benefit: 1) have an employer sponsor, 2) set up your personal Paidly account, and 3) provide financial information about your student loan.

Question 38

What if my employer doesn't offer student loan assistance yet?

Accepted Answer

Regardless of whether your employer offers the benefit, anyone can create an account, submit their student loan information, and use Paidly to crowdfund student loans. As soon as your employer signs up, you'll be able to connect your account with their benefit.

Question 39

Will my employer see my private financial data?

Accepted Answer

No. Paidly handles gathering and verifying employee financial information, maintaining security and privacy for everyone involved. We work directly with servicers to keep exact loan balances completely hidden from employers and donors.

Question 40

Can I use my Paidly benefit to pay my mandatory student loan payments?

Accepted Answer

No. Paidly benefits are supplemental payments only. You are still responsible for making your minimum monthly student loan payments.

Question 41

How does crowdfunding with Paidly work?

Accepted Answer

People can contribute directly to your education savings or student loan repayment via the Paidly app, the Paidly website, or using your personalized link. Once your Paidly balance reaches $25, we'll automatically send the funds to your designated education savings account or student loan.

Question 42

Who can contribute to my Paidly account?

Accepted Answer

Anyone who wants to support your educational goals can contribute to your Paidly account. This could be friends, family, and others who want to help you save for future education or pay down debt. Donors can contribute at https://meetpaidly.com/friends or create an account.

Question 43

What fees come with crowdfunding through Paidly?

Accepted Answer

There are two potential crowdfunding fees: Transaction Fee: A 2.9% + $0.30 fee applies to each contribution made by a donor. This fee covers the cost of processing the transaction. Donors often have the option to cover this fee themselves. Usage Fee: A 2.75% fee is applied when Paidly transfers your accumulated funds to your education savings or loan account. This fee is waived if you are receiving Paidly as part of an employer benefit program. This fee helps us maintain the platform and services.

Question 44

What are Paidly Groups?

Accepted Answer

Paidly Groups is a feature that allows you to manage and track multiple Paidly accounts in one central place. This is especially useful for families who want to oversee education savings or debt repayment for multiple individuals. Groups make it easy to monitor balances and contribute to each other.

Question 45

What is a transaction fee and can donors cover it?

Accepted Answer

The transaction fee (2.9% + $0.30) is charged each time someone contributes to your Paidly account. It covers the cost of securely processing the donation. When making a contribution, donors are given the option to cover this fee, so you receive the full donation amount.

Question 46

What is a usage fee and when does it apply?

Accepted Answer

The usage fee (2.75%) is applied when Paidly sends the funds you've received to your designated education savings or loan account. This fee helps support the Paidly platform and ensure continued service. It is automatically waived if you are receiving Paidly as an employer benefit.

Question 47

Do donors need a Paidly account to contribute?

Accepted Answer

No! Donors can send funds without an account, though they are welcome to make one if they wish to track their donations. Donors can search for recipients and contribute at https://meetpaidly.com/friends.

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