Even if your bank processes direct deposit on Saturday, the payment will be reflected on Monday if you run payroll on Thursday. So, if you pay employees with direct deposit, you may be wondering: Will direct deposit be made on a holiday? In short, the answer is no. The ACH only processes direct deposit transfers Monday through Friday. 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. 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. If your payday falls on a Saturday, you should consider paying your employees that Friday before their normal payday.