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Level 1

Paydate January 1, 2021

A client just brought to my attention that Jan 1, 2021 is her paydate at year-end. She doesn't want to pay early since that would skew her 2021 payroll and cause her employees confusion.

 

My question is whether Intuit will release fund on Jan 1, or will it hold the funds until Jan 4? This assumes proper reporting of the payroll on Dec 30, 2020

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QuickBooks Team

Paydate January 1, 2021

Hello there, @Taxwright.

 

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.

 

If you need further assistance in managing your payroll, you may speak to one of our live agents from the Intuit Online Payroll Support Team.

 

I've added this article for your reference about the holidays and payroll: How do federal holidays affect my direct deposit?

 

You may review this article for your future task about the payroll process: Common year-end questions and answers.

 

I'll be here if you have other questions about Intuit Online Payroll. Take care always and stay safe!

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Level 1

Paydate January 1, 2021

I have the same question, pleaser clarify.

 

The payroll is on 01/01/2021 and when will the employee receive their direct deposit? on 01/04/2021?

 

We have a budget for 2020 and it will be over the approved amount if this payroll is issued 12/31/20.

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Level 1

Paydate January 1, 2021

I have the same question, please clarify.

 

My payroll is 01/01/2021, when will my employees receive there direct deposit? 01/04/2021

 

I am unable to process on 12/31/2020 because we will be over our approved budget for 2020.

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QuickBooks Team

Paydate January 1, 2021

Hi there @WTCC1819,

 

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-

  1. From the Payday tab.
  2. Select the Check Details icon by the employee's name.
  3. Uncheck Use direct deposit.
  4. Enter the employee's paycheck information.
  5. Create.

 

Here is a link with steps for other payroll products: Turn off Direct Deposit

 

If you decide to process paper checks for this payroll, once you have created and printed the paychecks, you will want to change the Pay Method back to Direct Deposit.

 

Let me know if you have any additional questions about the payday or anything else. I’m happy to help anytime.

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