Juneteenth is a federal holiday commemorating the end of slavery in the US, and happens annually on June 19. Because it’s a federal bank holiday, the Federal Reserve and commercial banks are closed. If you don’t adjust your processing schedule, standard direct deposits won’t clear, delaying paychecks until the following week.
What you’ll learn
What you’ll learn
Key takeaways
- If your usual payday falls on Juneteenth, this federal bank holiday can delay payroll
- Plan to submit ACH payroll direct deposit information to your bank early
- Communicate with your team so they know when to expect their direct deposit
- Adjust your payroll platform’s settings to fit the holiday schedule
As a new employer or longstanding business owner, you might be wondering: Will Juneteenth affect direct deposit? The short answer is yes, but avoiding a delay just takes a little planning. This guide breaks down the exact steps you need to take to ensure your team is paid on time.
What is Juneteenth?
Juneteenth (short for “June Nineteenth”) commemorates June 19, 1865, the day federal troops arrived in Galveston, Texas, to ensure the last enslaved people in the state were freed.
When did Juneteenth become a paid holiday?
Juneteenth officially became a federal holiday in 2021. This means that non-essential federal government offices, the post office, and the Federal Reserve are closed. While private employers aren’t legally required to offer Juneteenth as a paid day off, many businesses offer it to their organization’s workforce as an employee perk. This is a call you can make.
Understanding the Juneteenth bank holiday schedule
Most consumer-facing banks follow the Federal Reserve schedule. Similar to how the Memorial Day bank holiday impacts your schedule in late May, the upcoming observance for Juneteenth is Friday, June 19, 2026, meaning banks will be closed.
How the holiday affects direct deposit timing
The Federal Reserve moves funds between US banks through the Automated Clearing House (ACH) system. These electronic transactions are only processed on business days when the Federal Reserve is open.
Because the Federal Reserve is closed on Juneteenth, the final settlement step is paused. What does this have to do with payday? If you don’t submit your payroll a little earlier than usual, this pause will cause a delay in your team getting paid.
Next, let’s see how you can plan ahead so there’s no hiccups.
Planning your payroll run around Juneteenth
To be sure everyone receives their paychecks before the weekend, you’ll need to adjust your payroll submission deadlines based on whether your business has a 2-day or 4-day turnaround.
Payroll submission deadlines for a 2-day turnaround
| Payday falls on | Submission deadline | Employer draft date | Check date |
| Thursday 6/18 | Tuesday 6/16 | Wednesday 6/17 | Thursday 6/18 |
| Friday 6/19 | Tuesday 6/16 | Wednesday 6/17 | Thursday 6/18 |
| Monday 6/22 | Wednesday 6/17 | Thursday 6/18 | Monday 6/22 |
| Tuesday 6/23 | Friday 6/19 | Monday 6/22 | Tuesday 6/23 |
Payroll submission deadlines for a 4-day turnaround
| Payday falls on | Submission deadline | Employer draft date | Check date |
| Thursday 6/18 | Friday 6/12 | Monday 6/15 | Thursday 6/18 |
| Friday 6/19 | Friday 6/12 | Monday 6/15 | Thursday 6/18 |
| Monday 6/22 | Monday 6/15 | Tuesday 6/16 | Monday 6/22 |
| Tuesday 6/23 | Tuesday 6/16 | Wednesday 6/17 | Tuesday 6/23 |
| Wednesday 6/24 | Wednesday 6/17 | Thursday 6/18 | Wednesday 6/24 |
| Thursday 6/25 | Friday 6/19 | Monday 6/22 | Thursday 6/25 |
Note: OnPay’s banking cut-off is 11:30 pm ET. Any payrolls processed after 11:30 pm ET are considered to be submitted on the next business day. The submission deadline can fall on a holiday, provided it’s before 11:30 pm ET, without affecting the payroll turnaround time.
Since Juneteenth is just one of a number of federal holidays that can affect direct deposit, let’s see how you can prevent this from making an impact when each comes around.
Best practices for holiday payroll management
- Check bank deadlines: Be sure you know exactly when your provider stops accepting files. Missing the cutoff by even a few minutes can push your payroll to the next business day.
- Communicate with staff: Tell employees in advance about the adjusted check date so there’s no surprises. Paying early can help keep employees happy and your inbox less flooded with emails.
- Double-check software settings: If your payday falls on a bank holiday, actively change the scheduled check date to the business day before. In OnPay, you can do this right when you start running payroll by clicking the pay schedule information in the upper right. Don’t worry — this won’t permanently affect future pay runs.
Simple and straightforward
“OnPay is very easy to use and puts all the payroll options at your fingertips. It is very intuitive, and getting help is easy.”
— Joshua McLean, Cherry Creek South Dental
Streamline direct deposit paychecks with OnPay
Navigating holiday schedules doesn’t have to be a scramble. OnPay’s payroll and HR software takes the stress out of holiday pay runs, ensuring accurate, on-time direct deposits. For employers thinking about using a service and curious about what we offer, give us a try. And if you have any questions, our team is always here to help!
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Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.