How to Pay Employees When Payday Falls On A Holiday
A vital part of any business is paying employees accurately and on time. According to a recent survey, somewhere between 50% and 78% of employees earn just enough money to pay their bills each month. This statistic alone puts employers in a unique position. Your ability to pay employees regardless of external factors is crucial to the success of your workforce.
You are watching: If payday falls on a monday
If paying employees accurately and on time is critical, how do you plan for paydays that fall on holiday? We’ll answer that question and more as we navigate payroll processing on holidays, weekends, and special bank days. Then, you’ll be prepared to pay employees timely and accurately.
Does Direct Deposit Go Through On Holidays?
The simple answer to this question is no. The Automated Clearing House (ACH) is the electronic network that processes direct deposits. They only handle direct deposit transfers Monday through Friday. ACH transfers exclude holidays and weekends.
Therefore, when payday falls on a holiday, employee direct deposits can be delayed. With 93% of American workers using direct deposit to get paid, it’s essential to plan accordingly for paydays that occur during holidays.
3. Automate Your Process With a Payroll Provider
Whether you’re processing in-house or using a manual method, a payroll provider can automate payroll workflows. This automation reduces the time you spend having to plan for payroll processing during a holiday. Payroll processing software eliminates manual holiday tracking through organized payroll schedules and holiday preloading dates.
This streamlined approach eliminates Excel spreadsheets and reduces time spent processing payroll from days to hours. Here are some other benefits of partnering with a provider for payroll processing:
Payroll Tax Compliance: Many payroll providers offer tax compliance services that alleviate the burden of staying up-to-date with tax tables. They act as your reporting agent on your behalf and ensure your payroll tax filings are accurate and on time.Employee Time Tracking: Automating your time tracking and online payroll processes together in the same system ensures employee paychecks are accurate every pay period.Manager and Employee Self Service: Desktop and mobile self-service tools provide a streamlined way for employees to submit their time and managers to approve time cards for a more efficient payroll process – even during holiday periods.
As the payroll administrator, APS has cut my time for processing payroll from 2 days to 2 hours. Reports are available within minutes of submitting the payroll batch. APS has been a great timesaver for our company!
How APS Can Help With Holiday Payroll
APS’ all-in-one payroll and HR technology automates holiday pay. With holiday preloading, you can eliminate the need to apply holiday pay to employees manually. Our Holiday Preloading Wizard makes it easy to add new holidays, select employee requirements, and choose when to apply holidays to time cards.
Our blackout dates feature lets you handle time-off requests proactively, especially during busy times of the year. Dates may be restricted for employees to request time off, ensuring adequate staffing during critical periods.
Avoid manual processes and automatically process your payroll in hours. Utilizing a unified solution like APS will make your employee pay process easier during the holiday season and all year long. Schedule a demo to learn more about how we can help you today!
A Breakdown of What Living Paycheck to Paycheck Looks LikeFederal Government Labor Laws Regarding Paydays on HolidaysNew Nacha Survey Shows Adoption and Awareness of Direct Deposit via ACH Continues to BuildState Payday Requirements