What to Do When a Pay Day Falls Within the Holidays
When a direct deposit falls within the holiday period, banks cannot process the payments. The money can only be accessed on the next business day. This is because banks are usually closed for the holidays. The absence of staff makes it impossible to follow up on the direct deposit made. Banks delay the payments made with direct deposits until they resume operations, usually a day later. If payments are to be made within a holiday period, then delays in processing are to be expected as a consequence. To avoid such a scenario, employers have to make adjustments to their payment schedule or seek alternative arrangements to pay their workers.
Since holidays are not impromptu events, with proper planning, a delay in payments can be avoided. An employer can opt to make payments a day before the actual payday to avoid the clash with the holiday. This is the ideal approach to sorting an issue with processing because of the holiday season. While it might affect scheduling and the regularity of pay, the trend will realign in the next month. Holidays are rarely arranged in a structured manner, the chance of a similar occurrence is slim for the rest of the year. This makes it easier for things to go back to normal in the next month, with pay dates going back to a fixed date.
If an employer has a more understanding workforce, he can risk a delay. The delay that is likely to be experienced from processing will be for a day. Communicating with workers in advance helps in avoiding complaints from your workers. By placing it as more of an inevitable inconvenience, workers can be prepared mentally to deal better with the disappointment. The risk involved is that workers might go home while broke, a situation they will attribute to poor management. The reputation of a company is at stake since your company will come off as an institution that cannot address employee needs. It will not be a popular move, and that might end up doing more damage to a company’s reputation.
Alternatively, you can run payroll as you usually would but pay an expedition fee. Although this will be at an extra cost, it will ensure that your employees are paid a day before going on holiday. Holidays come with many expectations and pressure, it would be a good idea to send your employees to their families with money in their pockets. Festivities enjoyed during these holidays are costly since your employees devote their time to the success of your company, it would be a gesture of goodwill to pay them promptly when they need money to celebrate with their families.
In the instance pay dates clash with a holiday, you have limited options as an employer. Paying earlier will show that you care about the welfare of your employees, while a delay in processing pay will invite their wrath. Facilitation of salaries contributes to the popularity of a company among its employees. Early preparation helps in avoiding delays in processing of workers’ pay.