Hi there, KM,
Yes, it can affect your payroll direct deposit. To avoid any issues, you should process payroll in QuickBooks before those dates, ideally a few days in advance. Direct deposits will not clear on those days, and QuickBooks will delay the funds until the next banking day.
On that note, it is important to know the lead time your payroll has. Your lead time depends on the payroll product you are using.
Here’s how it works:
For same-day direct deposits on holidays:
- If payday falls on a Monday holiday, approve paychecks by 7 AM PT on the prior Friday. Funds will be debited on Friday, and employees will receive payment the same day (Friday).
For a 5-day lead time during holidays:
- To account for the holiday, you’ll need to submit payroll one extra day early. For example, if payday falls on a Monday, approve payroll by the previous Thursday instead of Friday.
Timing can also play a role in Direct deposit during holidays. When you approve paychecks before 7:00 AM PT the day before a holiday, the funds will be withdrawn the same day, and employees will see the money by 5:00 PM local time, per NACHA rules.
But if you approve your paychecks before 5:00 PM PT the business day before payday, we’ll process the direct deposit and debit your account the day before payday. Your employee will receive the funds the next day.
You can visit this article to understand how federal holidays impact your direct deposit: How do federal holidays affect my direct deposit?
If you still need further assistance, please don't hesitate to leave a post below.
