Whether you pay your employees weekly, biweekly, monthly, or semimonthly, odds are your company’s scheduled payday might land on a bank holiday or weekend sooner or later. If banks are closed for a holiday or the weekend, they cannot process or transfer funds on your intended payroll date. Thus, if you pay your employees through direct deposit, a holiday or weekend payday would affect your payroll.
If you use an online payroll provider such as PayWow, we will help you navigate bank holiday paydays with ease! PayWow will automatically adjust your payroll processing date to accommodate for bank holidays and weekend paydays.
If your payday does happen to land on a weekend or holiday, there’s no need to stress! You have options! Continue reading to learn what to do if your payday falls on a bank holiday or weekend.
Your pay schedule determines how often your employees/contractors get paid. Having a consistent pay schedule is crucial for running your business effectively. The most common pay schedules employers typically choose are bi-weekly or semi-monthly. But, regardless of what payment schedule your business uses, it’s important that you are always consistent with it. We suggest creating a pay schedule and sharing it with your employees so they know what to expect throughout the year and to ensure that every payday is handled as planned.
Upcoming Bank Holidays
There are only 3 remaining bank holidays in 2021. These include:
Thursday, November 11th – Veterans Day
Thursday, November 25th – Thanksgiving Day
Saturday, December 25th – Christmas Day
There are several bank holidays throughout the year that may affect your payroll. It’s important to be proactive and plan your payroll accordingly for bank holidays during the year. Having a plan of action when it comes to bank holidays and weekend paydays is extremely helpful.
At the beginning of the year, you should decide how your business will handle bank holidays and weekend paydays during the year. However your business chooses to handle such instances, it’s important to always keep your employees in the loop and be consistent! Here are a few of the different options your business could choose from:
Run Payroll Earlier
If you want to pay your employees before the bank holiday, you will need to run your payroll one business day earlier. For example, if a bank holiday is on a Monday, you would run your payroll on the previous Friday to ensure your employees are paid on time.
Delay Your Payroll
If you delay your payroll, you would pay your employees the day after the bank holiday. If you do choose to do this, it’s important to always notify your employees that they would be getting paid a day later than normal.
Run Payroll as Usual
If you run your payroll as normal, your employees would receive their payment on the next business day following the holiday. Always make sure your employees know beforehand that their payday is being pushed back!
Expedite the Process
If you expedite your payroll process, this will speed up the time it takes to process your payroll submission. Typically, employers would do this if they forget about an upcoming bank holiday but still wanted their employees/contractors to be paid on time.
PayWow is an online payroll service provider that is designed for small businesses! With PayWow, you can ensure your employees/contractors will be paid on time, every time. We will always notify you of upcoming bank holidays and help you plan accordingly for them! And, after payday, we will distribute professional-quality paystubs to all of your employees/contractors. Learn more about what PayWow can do for your business!