For many small businesses, payroll is just another task on the to-do list. But when payday rolls around, the timing of payroll can mean the difference between happy employees and a stressful mess.
At Snake River Payroll, we’ve seen firsthand how choosing the right payday can prevent delayed direct deposits, payroll mishaps, and frustrated employees. If you’ve ever dealt with a bank holiday disrupting payroll or an employee not getting paid on time, this post is for you!
Why Payday Timing Matters
Most businesses set their payroll schedules without giving much thought to when employees actually receive their pay. But factors like bank processing times, weekends, and holidays can all affect when funds hit employees' accounts.
Here’s why the day you choose to run payroll matters more than you might think:
1. Avoiding Bank Holiday Delays
Did you know that if payday falls on a Monday holiday, employees might not get their paycheck until Tuesday?
We recently helped a dental practice switch their payroll processing day to Tuesday instead of Monday. This small adjustment ensured that their employees never had to worry about holiday-related payroll delays again.
2. Why Thursday Paydays Are a Smart Move
If an employee’s direct deposit doesn’t go through, wouldn’t it be nice to have an extra day to fix it?
A common payroll headache is when direct deposits fail due to bank issues. If payday is on a Friday and something goes wrong, employees could be left without their paycheck until the following Monday.
By running payroll with a Thursday payday, businesses give themselves a buffer day (Friday) to fix any issues before the weekend. It’s a simple strategy that can reduce stress and keep employees happy.
3. The Problem With Last-Minute Payroll Processing
If you’re waiting until the last minute to run payroll, you’re playing with fire. Banks typically require at least two business days to process direct deposits.
For example, if payroll is submitted on Wednesday for a Friday payday, that doesn’t leave much room for corrections. If there's an issue, an employee might not see their paycheck until the next Monday. This is why planning ahead is key!
Best Practices for Stress-Free Payroll
To make payroll smoother for both employers and employees, here are a few best practices:
✔️ Choose a Payroll Day That Avoids Holidays – If a payday falls on a bank holiday, adjust accordingly to ensure timely payments.
✔️ Consider a Thursday Payday – This gives employers a buffer day to fix any direct deposit issues before the weekend.
✔️ Process Payroll Early – Submitting payroll at least two business days in advance helps ensure direct deposits go through on time.
✔️ Work With a Payroll Expert – Payroll mistakes can be costly and frustrating. A payroll expert ensures your employees get paid on time, every time.
Let Snake River Payroll Handle It for You
At Snake River Payroll, we specialize in helping small businesses take payroll stress off their plate. From scheduling paydays to ensuring compliance, we make sure your payroll runs smoothly without surprises.
If you’re a business owner who wants to avoid payroll headaches, let’s talk! We offer free payroll evaluations to help you fine-tune your payroll process and ensure timely, hassle-free payments for your employees.
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