With year-end merely weeks away, it’s a great time to start preparing for administrative tasks, like planning payroll around banking holidays for the coming year. Payroll and HR professionals should note the new federal holiday, Juneteenth, which adds a federal banking holiday to the month of June.
The president signed the Juneteenth National Independence Day Act on June 17, making June 19, 2021 – a Saturday— a public holiday, which meant the holiday was observed on June 18. For 2022, the holiday falls on a Sunday and the Federal Reserve Board of Governors will be closed the next day, June 20, 2022.
Employers seeking information on any other banking holidays should refer to the Board of Governors of the Federal Reserve System, which maintains a list of federal banking holidays for the current year and the following four years. Bank files, including direct deposit files, do not move on federal banking holidays. So, if a holiday falls during your payroll processing period, you’ll want to move up the processing schedule to ensure your workers are paid on time. If your check date falls directly on a holiday, adjusting your payday to the previous business day is common.
Below is a table of holidays, payroll processing dates, and check dates. Our table is based on the following assumptions:
- Your scheduled check date falls on a holiday (or the Friday after Thanksgiving)
- You would like to pay your employees the business day before the holiday, with the exception of Thanksgiving for which the assumption is payday is the Friday after Thanksgiving.
- You follow a two-day processing timeline
|Holiday||Date||Process Payroll||Check Date|
|New Year’s Day 2022||January 1, 2022||December 29, 2021||December 31, 2021 (Federal Reserve Banks and Branches will be open.)|
|Birthday of Martin Luther King Jr.||January 17, 2022||January 12, 2022||January 14, 2022|
|Washington’s Birthday||February 21, 2022||February 16, 2022||February 18, 2022|
|Memorial Day||May 30, 2022||May 25, 2022||May 27, 2022|
|Juneteenth National Independence Day||Observed June 20, 2022||June 15, 2022||June 17, 2022|
|Independence Day||July 4, 2022||June 29, 2022||July 1, 2022|
|Labor Day||September 5, 2022||August 31, 2022||September 2, 2022|
|Columbus Day||October 10, 2022||October 5, 2022||October 7, 2022|
|Veterans Day||November 11, 2022||November 8, 2022||November 10, 2022|
|Thanksgiving Day||November 24, 2022||November 22, 2022||November 25, 2022|
|Christmas Day||Observed December 26, 2022||December 21, 2022||December 23, 2022|
|New Year’s Day 2023||Observed January 2, 2023||December 28, 2022||December 30, 2022|