Question

Core Payroll Pay Day Timing:1) if my payday is Monday and I have next day Direct Deposit, why am I prompted to run it on Thursday?2) If I run my payroll for Monday...

Forum|Forum|6 years ago
January 14, 2020
2 replies
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#2 continued - why did Direct deposit happen on Saturday?

QuickBooks Online

Let me share you some insights on how Direct Deposit works, @SG_Commexis.

QuickBooks transmit your payroll 2 banking days prior to the paycheck date. Then, the funds will be posted to the employee's bank account as of 5 PM on the paycheck date.

However, if the paycheck date falls on a non-banking day, transactions will be posted on the next banking day.

This means that if the payday is on a Monday, then you need to run the payroll on Thursday before 5 PM PT.

Although your bank process the Direct Deposit as early as Saturday, the payment will still reflect on Monday if you run the payroll on Thursday.

You can also run payroll reports in QBO to get a closer look at your business's finances.

If you encounter an issue when submitting direct deposit, you check this article for solutions: Resolve Direct Deposit Issues.

Feel free to go back to this thread if have further questions with regards to payroll. I'll always have your back.

S

SG_CommexisAuthor

Ok, thanks for the info. However, my plan give us direct deposit next day. So I would run payroll on a Friday for a Monday. So I am not sure why it is asking me to run payroll on Thursday.

C

Catherine_B

Federal banking holidays affects direct deposit processing, SG_Commexis.

You'll need to send payroll a day earlier than usual since Monday, January 20, 2020 is Martin Luther King, Jr. Day. That's why QuickBooks asks you to process it on Thursday. Creating payroll on Friday will post in your employee's bank by Tuesday.

Here's an article that will help you identify Federal Banking Holidays and when to process payroll.

You can always post your questions here if you need help.