When it comes to payday, it's important to know when your employees will receive their salaries. If your payday falls on a Monday, will your direct deposit be posted on Friday morning or Friday night? The answer is that your deposit will be deposited into your account on Monday. 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.
As a result, a holiday can disrupt your payroll processing schedule and desired pay date. If payday is a bank holiday, some payroll systems withdraw it on the previous banking day. For example, if you received your paycheck on the 15th and last day of the month, when your payday was Monday, April 15th, and you are in Mass or Maine and your bank branches were closed for Patriots Day, direct deposit would have been settled on Saturday the 13th. It is important to have a policy in place to pay employees during a holiday, as well as 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. Your contract must say that the payday is on or before the last day of the month. 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.
