If direct deposit payroll was processed on a federal holiday and the post day is the following day, will it post the next day or the following?

Greetings, @lafleming8113.

Let me be the first to welcome you to the Community. I'd like to share some information about how federal holidays affect payroll processing.

If you’re using the 24-hour direct deposit and processed on a federal holiday, QuickBooks will transmit the payroll on the next banking day. Your employees will be credited the day after. For example, if DD was created on 01/21/2019, Intuit would send payroll on 01/22/2019 and the amount will post on employee’s account on 01/23/2019.

Federal holidays will affect your payroll processing schedule and direct deposit. I suggest sending payroll a day earlier than usual to ensure timely payroll payments.

You can check out this article on how you can stay compliant with the Fair Labor Standards Act: https://community.intuit.com/articles/1771176.

That should get you pointed in the right direction. Please let me know if I can be of additional assistance by leaving a reply below. I’m always here to help. Thanks for dropping by and take care!

Is there a way to process the payroll to be deposited a day prior to the normal pay date, when the pay date lands on a Federal Holiday?

Thanks for joining this thread, Sonja_HIVEMINDEDMarketing.

Yes, you can process the payroll to be deposited a day prior to the normal pay date. Make sure you have the 1-day lead time deposit timing to accomplish this task.

However, if you have a 5-day lead time, give an extra day to submit payroll. For example, if the payday is on 11/26/2020, send the direct deposit on a Tuesday. Alternatively, create paychecks for your workers so they can receive their payroll.

When using direct deposit, the lead time affects how payroll is credited to your employees. This is the span of time between the day you submit your payroll and the day the workers receive their pay. Let me share this guide for more information: When do I need to submit payroll to pay employees on time?

To help get your employees to get paid on time when there’s a holiday, see the following resources.

• How do federal holidays affect my direct deposit?
• Intuit payroll calendar

Keep me posted if you need further assistance when working in QBO. I’ll be glad to lend a helping hand. Have a great day ahead.