If you use Intuit Payroll Subscriptions or Intuit’s Direct Deposit services you may need to adjust your normal payroll processing time table to allow for the Labor Day holiday. These adjustments will help ensure timely payroll tax payments and compliance with other regulatory authorities.
Intuit's guidelines specify if a payday falls on a federal banking holiday:
- If no changes are made to your payroll, direct deposit paychecks will be posted on the first business day after a bank holiday.
- If you want to pay employees before the holiday, adjust the paycheck date accordingly. You will also need to adjust your submission date to allow for the two business days needed to process payroll and direct deposits (Holidays are not considered business days). If your date change includes the leap year day, February 29, verify your computer/operating/calendar system recognizes the date.
- If a payday falls within two banking days of a holiday, payroll must be submitted one day earlier than usual. Example: Labor Day holiday falls on a Monday. Payroll must be submitted Wednesday August 28th for a payday of Friday August 30th.
Based upon the guidelines and specific example cited, if you would normally issue paychecks on Monday 9/2/13, you need to:
- Date your paychecks for your direct deposit employees for Friday, 8/30/13.
- You must transmit your payroll according to the following:
- Do-It-Yourself Payroll (Enhanced, Basic, Standard) and Assisted Payroll using Direct Deposit by 5 p.m. Pacific Time on Wednesday, 8/28/13.
- Intuit Online Payroll and QuickBooks Online Payroll by 5 p.m. Pacific Time on Wednesday, 8/28/13.
- Intuit Full Service Payroll (IFSP) by 3 p.m. Pacific Time on Wednesday, 8/28/13.
If your paycheck date is immediately before or after Labor Day, consult the table shown in the Headline for this blog to find out when to send your payroll and when your bank account will be debited.
Source information provided from Intuit Payroll Support: "How will the Labor Day and other federal holidays affect my payroll processing?" (Article ID: 2000132)