How do I navigate around federal holiday and weekend banking in my biz? You probably already know that federal holidays and weekends are non-banking days. Even some state holidays may be non-banking days, but how does this affect your direct deposits for your employees?
When you run payroll and submit your direct deposits to be drawn on a non-bank day, your direct deposit will be pulled from your account on the next banking day.
Let’s take a look at the federal holidays observed by banks. It is also good to check with your bank to see which state holidays they celebrate so you can submit your paychecks on time. Please understand that just because your bank is open does not mean your money is moving around. Basically, if the Federal Reserve is closed, then no money is moving.
When a holiday falls on a Saturday, the banks may be open on the preceding Friday, but the Board of Governors is closed. A similar situation occurs when the holiday falls on a Sunday. All Federal Reserve banks and the Board of Governors will be closed the following Monday. Here is a list of federal banking holidays for 2022. You can also check out this link which comes from the Board of Governors of the Federal Reserve System for 2022 through 2026:
|New Year’s Day||January 1|
|Martin Luther King, Jr. Day||January 17|
|President’s Day||February 21|
|Memorial Day||May 30|
|Independence Day||July 4|
|Labor Day||September 5|
|Columbus Day||October 10|
|Veterans Day||November 11|
|Thanksgiving Day||November 24|
|Christmas Day||December 25|
Have a Plan
Before you submit or approve payroll, determine how much lead time you will need for your payroll service. For some reason, you may be unable to submit the payroll on time. An alternative option is to pay your employees with a paper check. Obviously, this is not something you want to do too often. Having a plan and sticking to it will help you keep your employees happy around the holidays. Get it? Happy Holidays!
Keep Employees Informed
It is always a good idea to be transparent with your employees by making sure they know when to expect their paycheck during a holiday. Here is a suggestion for keeping your employees informed. Make a schedule at the beginning of each year and distribute it to them. It holds you accountable and keeps them informed. We all love to know when money is coming our way.
Hopefully, when those federal and state holidays roll around, you will know how to navigate your direct deposits better. If you need help processing your payroll, you can reach out to Deborah Mawson Bookkeeping to give you a helping hand.
Please check out our other articles here: https://deborahmawson.com/blog/