When it comes to paying your employees, it's important to have a consistent policy in place for when payday falls on a weekend. If the payday falls on a Saturday, you should consider paying your employees the Friday before their normal payday. If the payday is on a Sunday, you should pay them the following Monday. 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. The same rule applies to statutory holidays - if the legal holiday falls on a Saturday, the Friday before that Saturday is the legal holiday. 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. 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. Nacha's new survey shows that adoption and awareness of direct deposit through ACH continue to increase state payday requirements. 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. When paydays don't systematically fall on a weekday, which usually happens with semiannual and monthly payrolls, payday can occur on a Saturday.
If you normally pay workers on a twice-monthly pay schedule, you usually have to pay your workers the Friday before their normal payday if that payday falls on a working day. It's important to have an understanding of federal government labor laws regarding holiday paydays and what living paycheck-to-paycheck looks like in order to ensure that you are compliant with state regulations and that your employees are paid in an accurate and timely manner.
