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If your government direct deposit, such as a Social Security benefit, falls on a federal holiday, your funds will typically be received the business day before the holiday. Business customers should also be alert as to when a federal holiday is approaching. A bank holiday can throw a wrench into your finances if it delays a direct deposit you're relying on to cover an urgent expense or meet a payment deadline. Here's a breakdown of what can happen if your payday falls on a bank holiday. Direct deposit is one type of ACH transfer. For example, if you usually get your paycheck deposited into your checking account every other Friday—and one of those paydays falls on a bank holiday—your money could be stuck in processing limbo until the next business day. Although your pay may be a day late, the good news is you should receive your paycheck before the weekend as most banks should be open and operating on Friday. When a company expects to pay later... While physical bank branches are closed on Thanksgiving, automated processes like online transactions, direct deposits and electronic payments may still go through. However, manual transactions ... Let’s look at an example. If your payday falls on a Monday holiday, approve your paychecks by the prior Thursday. Your account will then be debited on Friday. Your employees will see their money on Friday. Keep in mind that a Monday holiday will also affect a Tuesday payday. For example, if your payday is on a Friday that's a holiday and you want employees to get paid on Thursday, you should approve payroll by Tuesday at 5:00 p.m. PT/8:00 p.m. ET. If you approve payroll after that time, employees will likely receive their pay on the next business day. Since Thursday, November 26th, is a holiday, you can submit your payroll Tuesday, November 24th before 5:00 PM PST. This way, your employees will receive their direct deposit funds on Friday, November 27th. I'm adding this article for more details: How do federal holidays affect my direct deposit? The Federal Reserve and Automated Clearing House (the electronic network for financial transactions including business-to-business payments, direct deposit of payroll, consumer bills, Social Security, e-commerce payments, and tax payments) are closed on federal holidays.

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