When payday falls on a holiday, it can be a tricky situation for employers and employees alike. It's important to have a policy in place to ensure that employees are paid on time, regardless of the day of the week. If your payday falls on a Saturday, you should consider paying your employees on the Friday before their normal payday. If it falls on a Sunday, you usually have to pay employees the following Monday.
This is a common practice for when the payday falls on a weekend. When the payday falls on a public holiday, it's best practice to pay your employees one day in advance. This is the case for the United States General Services Administration, for example. 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. It's important to establish the details of late or anticipated payments well in advance, allowing employees to plan their finances ahead of paydays. This way, there are no surprises when payday falls on a holiday or weekend. When it comes to federal government labor laws regarding holiday paydays, there is no requirement for timely payment of wages if a payday falls on a weekend or holiday. However, if you 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's essential to coordinate proper practice when payday falls on a weekend or holiday.
Nacha's new survey shows that adoption and awareness of direct deposit through ACH continue to increase state payday requirements.
