Payroll Brass Tax: Real-Time Pay, Real-Time Compliance

In this installment of our Payroll Brass Tax podcast series, Mike Mahoney (Morristown/New York) and Stephen Kenney (Dallas) explore the payroll and employment tax implications of on-demand pay, also known as earned wage access (EWA), and how real-time payment systems like the Federal Reserve’s FedNow service are accelerating its adoption. Stephen and Mike, who is the chair of the firm’s Employment Tax Group, cover the IRS’s constructive receipt doctrine, FICA timing, Fair Labor Standards Act considerations, emerging state licensing regimes in Nevada and Missouri, and Treasury’s proposed legislative fixes in the 2025 Green Book.