If a payday falls on a holiday, your employees have to wait until the next business day to access their salaries, unless you take action. If your payday falls on a Saturday, you should consider paying your employees that Friday before their normal payday. If it falls on a Sunday, you usually have to pay employees the following Monday. Just as it is important to have a policy in place to pay employees during a holiday, your company should have a consistent practice for when the payday falls on a Saturday or Sunday.
Usually, if payday falls on a Saturday, consider paying your employees on Friday beforehand. If the payday is Sunday, pay it the following Monday. Regardless of how often you pay your employees, some of your scheduled paydays will arrive on weekends. You must adjust your payroll process when the payday falls on a weekend, just like vacation pay.
A common practice is to pay your employees on Friday if the payday falls on a Saturday and on Monday if the payday falls on a Sunday. Regular paydays are scheduled on business days for the company. It's mainly Monday through Friday. According to human resources best practices, the salary must be paid one day in advance if the payday falls on a public holiday.
For example, the United States General Services Administration pays its employees one day in advance if the payday falls on a public holiday. If your payday falls on a holiday, your paycheck may be affected if you are paid by direct deposit or if you receive a paper check. If you are paid by direct deposit, your payroll provider will likely process the payment a day earlier to provide funds to the bank before it closes for holidays. If you receive paper checks, your employer will likely issue your check a day earlier to provide the funds before your office closes for vacation.
There is no requirement for timely payment of wages if a payday falls on a weekend or holiday. For employers who are subject to the requirement to make semi-annual salary payments, if the first or fifteenth of the month occurs on a day that is not a working day, the last preceding business day will be the payday for all staff who receive a payment at one location. It helps to establish the details of late or anticipated payments well in advance, allowing employees to plan their finances ahead of paydays. There are no Sunday scares here, just like when payday falls on a holiday, it is essential to coordinate proper practice when payday falls on a weekend.
A Breakdown of What Living Paycheck to Paycheck Looks Like Federal Government Labor Laws Regarding Holiday Paydays Nacha's new survey shows that adoption and awareness of direct deposit through ACH continue to increase state payday requirements.