When it comes to running payroll, employers must have a consistent practice in place for when payday falls on a weekend. If your bank processes direct deposit on Saturday, the payment will be reflected on Monday if you run payroll on Thursday. But what about when payday falls on a holiday? The answer is no. The ACH only processes direct deposit transfers Monday through Friday.
So, if payday falls on a Saturday, employers should consider paying their employees the Friday before their normal payday. Similarly, if the payday is Sunday, it should be paid the following Monday. It is essential to coordinate proper practice when payday falls on a weekend. This ensures that employees are paid on time and that there are no Sunday scares.
Having a policy in place to pay employees during a holiday is also important.
