payroll direct deposit lag time

I just submitted my payroll at 5:34 Eastern time which is 2:34 PST and my deposit will not be made for 3 days.  What changed? 

Allow me to provide you the reason why your account will be debited after 3 days, @AMWarnez.

Since November 11 (Wednesday) is Veterans Day, your employee will receive their paycheck on the next banking day. During federal holidays, most of the banks are closed. This is why it takes 3 days (one non-banking day plus two banking days) to deposit the payment.

For more information on how federal holidays affect direct deposit in QuickBooks Online (QBO) Payroll, you can check out this article: How to federal holidays affect the payroll process in QBO Payroll.

In addition, you can check the list of federal holidays in this article. This will guide you on managing your payments or collections schedule in QuickBooks: Dates of federal holidays for this year.

Please know that QuickBooks Community is always open to help you with any payroll related concerns. Simply comment down below so we can assist you. Stay safe. 

Why does everything I’m seeing say payroll lag time is 2 business days yet when I do my payroll it is 5 days? 

Hi @MelanieVision,

I'll take care of this query for you. 

For QuickBooks Online (QBO) Payroll, the lag time or the lead time for direct deposit is either a 1-day or a 5-day lead time. It depends on the type of payroll service you have. 

Take a look at this article for more information about this process: When do I need to submit payroll to pay employees on time?

You have the option to submit a request for a quicker lead time. Visit this page to do so: Faster Funding Request.

Let me know if you need anything else. Post a reply below, and I'll get back to you.

Is there any way to process an advance using the direct deposit method? it would be easier than management chasing down employees on the move...thanks.

Let me share some insights regarding your query, @Nick Lar.

When processing payroll, you can pay your employees on time by submitting your payroll on the right day. 

Using Direct deposit, paychecks can be created and transmitted up to 45 days in advance.

• Direct deposit processing timeline.
• Understanding lead times and payroll submission days.

Please let me know how it goes, Nick Lar. I want to make sure everything is taken care of.

You can just add a withholding that hits the employee advance account. It will show up like any insurance or tax deduction and removes the need to handle cash.

I reread your question and I wanted to add something. If you meant paying an advance (I answered the question like you were trying to be paid back in my above response) you need to just do a bank ETF. Employee advances are not payroll and thus shouldn't be run through payroll unless you know how to clean up the taxes that QBs will try to add. Just advance the money after the employee signs something that includes a payback plan and a cause that repayment isn't stopped if employment stops. Then deduct the money out of the normal payroll in accordance with the payment plan. You will need to record the receivable before the bank reconciliation can be completed. 

Ryan, the issue for me is not so much the funding, it is being required to submit payroll on the last day of the pay period by 5 Pacific time.  Work isn't even done sometimes.  There must be a better way.  Then we have to wait for 4 DD before any consideration.  Definitely not going to use DD under these requirements.

To me, it sounds like you may need to adjust your pay periods vs your pay dates, especially with hourly employees. We grew from 5 people to 23 in a very short time, so I was having my hourly people "project" what they'd do on that last day so I could get their hours in their check. We pay 1st and 15th, so I was running them up to that day before and it got very difficult. We switched to paying in arrears instead of "up-to-date" and it's helped tremendously. Now I have several days to calculate and make sure everything is turned in and correct before submitting DD two days before pay-date. I run my pay periods the 8th-22nd and 23rd-7th to pay on the 1st and 15th. It took giving a short-check, if you will, to get everyone on that schedule, but we did it over a couple of months so they had a choice, and finalized it as of Jan 1's check (so they had their Christmas Bonus to lean on if necessary). Anyway, I hope this helps a little...I did a ton of research to make sure those dates worked and so far, it's been flawless!  

I pressed submit at 4:49pm pst, but the finalizing page lagged so it was officially done at 5pm pst. Does that mean the payroll direct deposit will be delayed?

We haven’t seen it in our bank account yet, so we’re worried. 

Thanks for joining the thread, tsheets_user. I know how important to get your payroll processed at the right time. I'm here to share information about the payroll direct deposit lag time.

The cutoff time for submitting a payroll is 5 PM PST at least two banking days before the paycheck date. Paychecks submitted after the cut-off time (5 PM-PST) will be processed on the next banking day and paid two banking days after that. Since we're unsure of the exact time you submitted your payroll due to the unresponsiveness of the page you encountered. You'll need to wait for your payments to be deposited.

To learn more about the direct deposit schedule and how to adjust your payroll for holidays. Feel free to read this article: How do federal holidays affect my direct deposit?

Additionally, you may check out the following articles for more information about the Direct deposit payroll processing timeline:
 

• Direct deposit processing timeline
• Understanding lead times and payroll submission days
   

If you have clarification or any other QuickBooks-related concerns, let me know in the comment section. I'll be happy to assist you. Keep safe!

I have the same issue. If the cut off time is before the end of the day for which we are reporting how is this handled? It seems like such an early cut off time. Did you adjust your pay periods and how did How did you do it? We pay weekly so I have to run payroll weekly and the day before and this only is an issue when there’s late work or a holiday. 

Hello, JDSNeas. 

In QuickBooks, you must transmit payroll information to Intuit before 5 pm PT at least 2 banking days before the pay date, meaning you'll also have to take things like banking holidays into consideration. Given the long weekend coming up, you'll want to keep that in mind as well. Our Direct deposit FAQs and How do holidays impact payroll direct deposit? are good resources for these kinds of details. 

Also, It never hurts to double check on your payroll's setting though, which our support team would be happy to help with. Our team has the tools to review the pay run from our end to let you know if there's changes made in your account.

Here's how: 

1. Click the Help (?) icon.  
2. Choose Contact Us. 
3. Enter a brief description of your situation in the What can we help you with? area, then click Let's talk. 
4. You'll be presented with a few options for connecting with Intuit. Select Get a call. 

If you want to get a direct phone number, you can check it out in this article: Contact Payroll Support. 

You can also visit our our general help topics page to search for your concern. This page will route your to the related help articles, Community discussions, video tutorials, and more.

Please don't hesitate to get back to me if you have any other concerns or questions. I'll be around to help you out. Stay safe!

So, let's say our payday is Wednesday and no holidays that week. Do I need to do payroll Monday or Sunday?