cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Intuit
28 helpful votes

How do federal holidays affect my direct deposit?

Learn how to make sure your employees get paid on time when there’s a holiday.

Need to adjust your payroll for a holiday? No problem. You can submit your paychecks a day earlier than usual. Here's how.

How to adjust your payroll for holidays

Weekends and federal holidays are non-banking days. If payroll is submitted on a non-banking day, your direct deposit will be drawn from your account the next banking day. Additionally, banks often close on state holidays. You’ll want to double-check with your bank for any state holidays they observe.

Note: Make sure to allow for your specific lead time for your payroll service.

Note: Don’t know what payroll service you have? Find out which payroll service you have.

 

These services have a 2-day lead time. You need to submit the payroll by 5:00 PM PST 2 business days prior to payday.

Direct deposit timing for holidays

Does payday fall on, or two days after, a holiday? 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. Make sure your account has funds to cover the payroll on the day before the draw takes place.

What does 2-day lead time and a holiday look like?

Let’s look at an example. If your payday falls on a Monday holiday, approve your paychecks by the prior Wednesday. Your account will then be debited on Thursday. And your employees will see the money on Friday.

A Monday holiday will also affect a Tuesday and Wednesday payday. If payday falls on the two days after a holiday, submit payroll one day earlier than usual.

These services have a 1-day lead time. This means you need to submit your payroll before 5:00 PM PST 1 business day prior to payday.

Direct deposit timing for holidays

Does payday fall on, or the day after, a holiday? 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. Make sure your account has funds to cover the payroll on the day before the draw takes place.

What does a 1-day lead time and holiday look like?

Let’s look at an example. If your payday falls on a Monday holiday, approve your paychecks by the prior Thursday. Your account will then be debited on Friday. Your employees will see their money on Friday.

Keep in mind that a Monday holiday will also affect a Tuesday payday. If payday is the day after a holiday, submit payroll one day earlier than usual.

With QuickBooks Online Payroll Full Service, QuickBooks Online Payroll Premium, and QuickBooks Online Payroll Elite, you have same day direct deposit.

Direct deposit timing for holidays

When you approve your paychecks before 7:00 AM PST on the day before the holiday, your money will draw from your account the same day. Your employees will see the money by 11:59 PST.

But if you approve your paychecks before 5:00 PM PST 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.

Be sure you have funds in your account to cover the payroll on the day it’s submitted.

What do same-day deposits and a holiday look like?

Let’s look at an example. If your payday falls on a Monday holiday, approve your paychecks on the prior Friday by 7 AM PST. Your account will be debited on Friday and your employees will get paid on Friday.

What happens if I submit payroll after the cutoff time?

If you've missed the cutoff time, your direct deposit will process the next business day. This means your employees will get paid a day later. If you would like to pay them on time, you have the option to issue a paper check instead.

Was this helpful?

You must sign in to vote, reply, or post

Need to get in touch?

Contact us