📝 Overview
Federal bank holidays affect direct deposit processing times, which can shift your submit-by date, pay date, or pay period dates. This article explains how holidays impact payroll timing and provides a reference calendar of bank holidays through 2029.
📆 Direct Deposit Timing & Submit By Date
The submit-by date for a payroll with a direct deposit payment method is calculated by taking the pay date and subtracting 4 business days for direct deposit processing, plus 1 additional business day for the submit-by date.
For example: a Friday pay date results in a Monday submit-by date.
⚠️ How Bank Holidays Affect Payroll
When banks close for a holiday, it adds one additional business day to direct deposit processing. Depending on your pay group settings, this can affect your submit-by date, pay date, or pay period dates.
You will notice the impact when your submit-by date appears earlier than usual. Review the options below to determine the best approach for your pay schedule.
🛠️ Your Options During a Bank Holiday
The table below is a general reference and does not constitute advice on rules or regulations.
Goal | Option |
Keep the same pay date and pay period | Switch to paper check payment method |
Keep direct deposit and the same pay period | Move the pay date out by one business day |
Keep the same pay date | Submit payroll earlier, before the holiday |
📍 Bank Holiday Calendar: 2026–2029
Use the table below to plan ahead for upcoming bank holidays and their impact on payroll processing.
Holiday | 2026 | 2027 | 2028 | 2029 |
New Year's Day | January 1 | January 1 | January 1* | January 1 |
Martin Luther King Jr. Day | January 19 | January 18 | January 17 | January 15 |
Washington's Birthday (Presidents' Day) | February 16 | February 15 | February 21 | February 19 |
Memorial Day | May 25 | May 31 | May 29 | May 28 |
Juneteenth National Independence Day | June 19 | June 19* | June 19 | June 19 |
Independence Day | July 4* | July 4** | July 4 | July 4 |
Labor Day | September 7 | September 6 | September 4 | September 3 |
Indigenous Peoples' Day / Columbus Day | October 12 | October 11 | October 9 | October 8 |
Veterans Day | November 11 | November 11 | November 11* | November 11** |
Thanksgiving Day | November 26 | November 25 | November 23 | November 22 |
Christmas Day | December 25 | December 25* | December 25 | December 25 |
💡Tip:
* For holidays falling on a Saturday, Federal Reserve Banks and Branches will be open the preceding Friday.
** For holidays falling on a Sunday, all Federal Reserve offices will be closed the following Monday.
Click the link below to view the table source.
❓ Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
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How many extra days does a bank holiday add to processing?
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Each bank holiday adds one additional business day to direct deposit processing. If your payroll falls near a holiday, your submit-by date will shift earlier to account for the reduced processing window.
How will I know if a bank holiday is affecting my payroll?
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You will notice that your submit-by date appears earlier than usual. Review your upcoming pay schedule against the holiday calendar above to anticipate any shifts in advance.
Can I switch to paper checks to avoid a holiday delay?
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Yes. Switching to paper checks for that payroll run allows you to keep the same pay date and pay period without being affected by the bank holiday. This is a common option for employers who want to maintain their original schedule.
What happens when a holiday falls on a Saturday?
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When a federal holiday falls on a Saturday, Federal Reserve Banks and Branches remain open the preceding Friday. The holiday is not observed as a processing delay in that case. Holidays marked with a single asterisk (*) in the calendar above fall on a Saturday.
What happens when a holiday falls on a Sunday?
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When a federal holiday falls on a Sunday, all Federal Reserve offices are closed the following Monday. This means the Monday acts as the observed holiday for payroll processing purposes. Holidays marked with a double asterisk (**) in the calendar above fall on a Sunday.