Monday is Memorial Day, an important day for our nation as we honor those who gave their lives for our country and the values on which our country was founded. It also happens to be a federal banking holiday, which for some means a day off work. For payroll professionals, however, it can also mean a shift in the usual payroll processing schedule.
If a federal banking holiday falls during your payroll processing period, you’ll want to be sure to move up the processing schedule to accommodate the holiday. If payday falls on a holiday, adjust your payday to the previous business day since a federal banking holiday should not be used as a direct deposit or check date. So, this might include asking your managers to approve time cards one day earlier and processing payroll one day earlier.
Keep in mind that your payroll service provider may also be closed on a federal banking holiday. Inova Payroll is closed on certain federal banking holidays, including Memorial Day. So getting your payroll wrapped up before the holiday is best, that way your support team member will be available if any questions or problems arise.
The Board of Governors of the Federal Reserve System lists banking holidays for 2017 and the next several years. Use it to set reminders to adjust your processing schedule. This is especially important at year-end when Thanksgiving, Christmas, and New Year’s can mean back-to-back schedule changes.
The next federal banking holiday following Memorial Day on Monday is Independence Day on July 4. It falls on a Tuesday this year and may impact your payroll schedule, so set a reminder now! And have a safe holiday.