Payroll: Preparing For an Upcoming Holiday

If you need to submit payroll early before an upcoming holiday, here are some key things to keep in mind.

In preparing for upcoming holidays, it’s important to plan ahead for payroll—especially if you’ll need to submit it earlier than usual. This can be particularly tricky if you have hourly employees who are paid to the current period, as it may require adjustments to your timesheet approval window or your pay date falls on a federal holiday. 

Holiday Payroll Tip: Federal Holidays and Bank Closures

Did you know that payday can be delayed if it falls on a federal holiday? This happens because the Federal Reserve and Automated Clearing House (ACH) systems are closed, pausing ACH payments. To avoid delays:

• Plan Ahead: If payday falls on or the day after a federal holiday, make sure to process your payroll at least one business day earlier than you usually would process.
  • In GoCo, we do require you to submit payroll 2 business days prior to the expected pay date. Reminder, a federal holiday is not treated as a business day.
  • Example: If you typically process payroll on Wednesday's for a Friday pay date, and a Federal Holiday falls on Thursday. You would need to process payroll Tuesday prior to that Federal Holiday.  
• Account Funds: The payroll funds will be drawn from your account before regular banking hours on the next business day. Ensure your account has sufficient funds the day before the draw occurs to avoid any issues.

By proactively adjusting your payroll schedule, you can ensure timely payments for your team, even during the holiday season.

Timesheet Approval Deadline

• To ensure that hours are included in payroll, timesheets must be approved to be reflected in payroll. Without approval, the hours will not be included.
• The exact approval deadline depends on your organization’s settings. Navigate to the Time app to view upcoming approval due dates. Reach out to GoCo Support if adjustments are needed.

Plan for Early Payroll Submissions

• Verify your approval deadlines (e.g., whether timesheets are approved within hours or days after the pay period ends).
• If you have hourly employees paid to the current period, you may need to modify your timesheet approval window to allow for early submission.
• Approve and export timesheets as soon as possible, especially when planning for an earlier payroll submission due to holidays.

Follow this link for important end of year dates to be aware of!

By following these steps, you can avoid last-minute complications and ensure payroll is processed smoothly and on schedule. If you have further questions reach out for support.