Time needed to process a payroll
If you're paying your employees through direct deposit, you'll want to run your payroll 4 business days (excluding weekends and bank holidays) prior to your employee payday due to the standard Automated Clearing House (ACH) processing time. This will ensure that your employees will get paid on time.
Example timeline if your employees are paid on Friday:
- Monday: Run payroll by 4pm PT. We'll contact your bank account to verify that funds are available to cover payroll.
- Tuesday: Funds are debited from your company's bank account.
- Wednesday: Funds are collected and processed with the bank.
- Thursday: Payments to the employees are initiated.
- Friday: Funds are deposited in the employee's bank account in the morning.
Missed the deadline to run payroll? Not a problem. Run payroll late to expedite this process.
Note: If you're paying your employees with a check instead of direct deposit, the latest you can run payroll is on your employees' payday. Remember to print your checks and hand them to your employees.