Payroll Processing Deadlines Around Federal Holidays

Purpose

This article explains how weekends and true Federal Reserve bank holidays affect payroll processing deadlines and check dates for Dominion Payroll clients, emphasizing:

• Processing payroll two business days before the check date.
• How check dates shift when they fall on weekends or actual bank-closed holidays.
• Clarifying that the Friday before a Saturday Independence Day or Veterans Day is not a bank holiday.

Dominion Payroll Processing Deadline

• Dominion Payroll’s standard deadline for processing payroll is 3:00 PM Eastern, two business days before your check date.
• A business day is Monday–Friday, excluding dates when the Federal Reserve is closed (official bank holidays).
• If you move your check date, your processing deadline moves with it and remains two business days before that new check date.

When Check Dates Fall on Weekends

The Federal Reserve does not settle ACH transactions on Saturdays or Sundays, so direct deposits and many tax drafts do not process on weekend dates.payanywhere+1

Dominion Payroll recommends:

• If your check date falls on a Saturday, move it to Friday.
• If your check date falls on a Sunday, most employers move it back to Friday, so employees are paid before the weekend.

Example – Sunday check date:

• Original check date: Sunday
• Adjusted check date: Friday before that Sunday
• New processing deadline: Two business days before Friday (usually Wednesday by 3:00 PM Eastern).onlinepayroll.

When Check Dates Fall on True Bank Holidays

On official Federal Reserve bank holidays, ACH/direct deposits and many payment files do not process.atlantafed+1

If your check date is on one of these bank-closed days, you have two options:

• Pay before the holiday: Move the check date to the preceding business day, and process payroll two business days before that earlier date.
• Pay after the holiday: Move the check date to the next business day, and process payroll two business days before that later date.

This applies to dates like New Year’s Day, Memorial Day, Labor Day, Thanksgiving, and any weekday occurrence of Independence Day, Veterans Day, and other federal holidays when the Federal Reserve is closed.

Independence Day: Saturday vs. Weekday

• When July 4 falls on a Saturday, the Federal Reserve’s holiday schedule shows Independence Day as Saturday, July 4, and Federal Reserve Banks are open on Friday, July 3.
• As a result, Friday, July 3 is a normal processing day from a banking/ACH perspective, even though some federal offices may treat it as an “observed” day off.

Practical impact:

• If your regular check date is Friday, July 3 in a year when July 4 is Saturday, you typically do not need to move the check date for bank reasons. Direct deposits can still clear on July 3.
• You would only adjust the check date if your organization’s own paid-holiday policy requires it (for example, choosing to pay employees earlier or align pay with an internal closure), but not because the Federal Reserve is closed.

When Independence Day falls on a weekday (e.g., Thursday or Friday), that day itself is a bank holiday, and you must move the check date to a valid business day and keep the two-business-day rule.

Veterans Day: Saturday vs. Weekday

• Veterans Day is always legally observed on November 11, but Federal Reserve practice for Saturday holidays is the same:
  • When a holiday falls on Saturday, Federal Reserve Banks and branches stay open on the preceding Friday, and the official bank holiday is still Saturday.
• That means the Friday before a Saturday Veterans Day is not a Federal Reserve bank holiday; ACH/direct deposits can process normally on that Friday.

Practical impact:

• If Veterans Day falls on a Saturday, and your normal check date is the preceding Friday, you generally do not need to move your check date for banking reasons.
• You only adjust pay dates if your own company policy or state requirements treat that Friday as a paid holiday for employees, not because the bank network is closed.

When Veterans Day falls on a weekday (e.g., Wednesday, November 11), that date is a standard Federal Reserve holiday; in those years, treat November 11 as a bank-closed day and move check dates accordingly.aarp+1

Recommended Employer Practice

To keep payroll consistent and avoid surprise delays:paydayhcm+1

• Use the Federal Reserve holiday list as the source of truth for which dates are real bank-closed days (not just “observed” days for government employees).
• Favor “pay early rather than late” when your chosen check date hits a weekend or true bank holiday, especially for Sunday pay dates.
• Publish an annual payroll calendar that shows:
  • All official Federal Reserve holidays.
  • Any check dates moved off weekends or bank-closed days.
  • Dominion Payroll processing deadlines (two business days before each adjusted check date).