How Holidays Impact Payroll Processing Timelines
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:
- From the 7shifts web app, navigate to the Payroll Dashboard.
- Your updated processing window will be highlighted.
Email Notifications:
- Customers will receive email alerts detailing any changes to approval deadlines and payroll timelines for holiday weeks.
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:
-
Run an Off-Cycle Payroll for the pay period and exclude the incomplete day, e.g. Nov 21st
OR
Wait to submit the payroll till the next available day using regular processing, cheques, or wire. More information on these options here: Missed Your Payroll Deadline? Here’s What to Do (3-Day Payrolls) and Missed Your Payroll Deadline? Here’s What to Do (2-Day Payrolls).
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
ApprovalWed Thu
HolidayFri
PaydaySat -
3-Day Payroll Deadline: Approve by Monday to ensure payday on Friday the 29th.
Sun Mon
ApprovalTue
Wed Thu
HolidayFri
PaydaySat
⚠️ 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 |