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How Holidays Impact Payroll Processing Timelines

Updated

Banking holidays affect payroll because direct deposits are not processed on federal banking holidays. If a banking holiday coincides with your regular payroll processing or pay dates, adjustments to payroll timelines are necessary.

  • Holiday-Adjusted Deadlines: If the standard approval deadline falls on a holiday or if a holiday occurs between the deadline and payday, the approval deadline moves one day earlier.
  • Notifications: Payroll Customers are notified via email and in-app messaging during holiday weeks about updated processing timelines.


SKIP AHEAD TO

Where to Find Notifications
Holiday Payroll Processing Guidelines
Adjusted Deadlines
Upcoming Banking Holidays

Where to Find Notifications

In-App Messaging: 

  1. From the 7shifts web app, navigate to the Payroll Dashboard.
  2. Your updated processing window will be highlighted.Screenshot 2024-12-15 at 9.10.42 PM.pngScreenshot 2024-04-09 at 9.28.54 AM.png

Email Notifications: 

  • Customers will receive email alerts detailing any changes to approval deadlines and payroll timelines for holiday weeks.
    Screenshot 2024-04-09 at 9.28.01 AM.png

Holiday Payroll Processing Guidelines

3-Day Payroll

  • Approval Deadline: Always three banking days prior to payday by 12:00 PM PST / 3:00 PM EST, including holiday weeks.
  • If the approval deadline falls on a holiday or if a holiday occurs between the deadline and payday, the approval deadline moves one day earlier.

2-Day Payroll

  • Approval Deadline: Always two banking days prior to payday by 5:00 PM PST / 8:00 PM EST, including holiday weeks.
  • If the approval deadline falls on a holiday or if a holiday occurs between the deadline and payday, the approval deadline moves one day earlier.

If the adjusted deadline causes the last day(s) of your pay period to be excluded (e.g., your approval deadline is now Nov 20, but your pay period runs Nov 16–21), you have a few options to ensure all hours are paid:

Example: Adjusted Deadlines 

If payday is Friday, November 29, 2025 (Thanksgiving Week), below are the adjusted approval windows for each payroll type.

(Thursday is a holiday, requiring the deadlines to be adjusted.)

  • 2-Day Payroll Deadline: Approve by Tuesday to account for Thanksgiving Thursday.

    Sun Mon
         		 Tue
     Approval     		Wed Thu
    Holiday     		Fri
    Payday     		Sat

  • 3-Day Payroll Deadline: Approve by Monday to ensure payday on Friday the 29th.

    Sun Mon
    Approval     		Tue
         		 Wed Thu
    Holiday     		Fri
    Payday     		Sat

⚠️ Important Reminder: Following a banking holiday, direct deposits may be delayed until the end of the day due to adjusted processing timelines.

If payday falls on a Holiday (processing date is not a holiday)

If the payday falls on a federal banking holiday—even when the processing date does not—funds will not be deposited until the next available banking day. Direct deposits cannot be delivered on holidays. For example:

  • Payroll Type: 2-day

  • Processing Date: Tuesday, July 2, 2024

  • Payday: Thursday, July 4, 2024 (Independence Day – a federal holiday)

  • Employees will not receive their pay on July 4. Instead, funds will arrive on Friday, July 5, 2024, unless you change the payday to an earlier banking day.

Upcoming Banking Holidays 

Below is a table of federal banking holidays for the upcoming years that may impact your payroll processing timelines:

Federal Holiday

          2024

          2025

          2026

          2027

          2028

New Year's Day

 January 1 January 1 January 1 January 1 January 1

Martin Luther King Jr. Day

 January 15 January 20 January 19 January 18 January 17

President's Day

 February 19 February 17 February 16 February 15 February 21

Memorial Day

 May 27 May 26 May 25 May 31 May 29

Juneteenth

 June 19 June 19 June 19 June 19 June 19

Independence Day

 July 4 July 4 July 4 July 4 July 4

Labor Day

 September 2 September 1 September 7 September 6 September 4

Columbus Day

 October 14 October 13 October 12 October 11 October 9

Veterans Day

 November 11 November 11 November 11 November 11 November 11

Thanksgiving Day

 November 28 November 27 November 26 November 25 November 23

Christmas Day

 December 25 December 25 December 25 December 25 December 25

 

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