Payroll Processing on Bank Holidays

Purpose

Direct deposits move through the Federal Reserve banking system, which closes on federal bank holidays. UZIO cannot process direct deposits on those days, so bank holidays affect when your employees get paid and when you must approve payroll. This article lists the holidays and explains how to plan around them.

Who needs this: Any user whose role includes the Payroll permission and who schedules or approves payroll.

Federal Reserve holidays (no direct deposit processing)

\* Falls on a Saturday. The Federal Reserve is open the preceding Friday. When a holiday falls on a Sunday, the Federal Reserve closes the following Monday.

UZIO's payroll calendar uses this same list. These dates are already blocked as pay dates in your pay groups and in the special payroll date picker.

What this means for your payroll

• Pay dates cannot fall on bank holidays or weekends. UZIO will not let you select one when setting up pay groups or starting a special or contractor payroll.
• Deadlines shift. The 2-business-day window between approval and pay date counts business days. A holiday inside that window means approving one day earlier than usual.
• Holiday weeks are the usual cause of a late payroll. A Monday holiday turns your usual Friday-for-Wednesday approval into Thursday-for-Wednesday.

Worked example: Your pay date is Wednesday, September 9, 2026. Labor Day is Monday, September 7. The two business days before the pay date are Friday, September 4 and Tuesday, September 8, so you must approve by 5:30 PM EST on Thursday, September 3. Without the holiday, the deadline would have been Friday, September 4.

Related articles

• Processing a Regular Payroll: approval deadlines
• Understanding and Setting Up Pay Groups: pay date rules
• Running a Special Payroll