Allow me to share more details about how the federal holidays affect your direct deposit.
You've mentioned that the proper reporting should be on December 30, 2020, by check date. If hours are worked in 2019 and paid in 2019, the paychecks belong in the 2019 payroll. If the hours are in 2019, but paid in 2020, the paychecks belong in the 2020 payroll.
That being said, you'll have to submit payroll one business day earlier than you normally would. The money will be drawn from your account before regular banking hours the next business day.
Based on your scenario, you'll have to approve paychecks on Tuesday December 29. Your account will be debited on Wednesday December 30. And your employees will see the money on Thursday December 31.
Please take note that these services have a 2-day lead time. You'll have to submit the payroll by 5:00 P.M.PST 2 business days prior to payday.
I’d be happy to clarify the deposit times for you. You indicated that the paycheck date is 01/01/2021. New Year’s day is a Federal Reserve Bank holiday, so most banks are closed which means Direct Deposit funds don’t move. Since 01/01/2021 is a Friday, and money also doesn’t move on weekends, the next business bank day is Monday, 01/04/2021.
You do have the option of creating paper checks for this payroll which could be dated 01/01/2021 but distributed prior. To change the Pay Method follow these steps:
For Intuit Online Payroll-
From the Payday tab.
Select the Check Details icon by the employee's name.