Two-day payroll gives you more time to run payroll, off-cycle and contractor payments to get your team paid sooner.
Employee pay day is five business days after the end of the pay period. To pay your employees on time, you must submit payroll by 8 PM PT two business days in advance of the pay date.
For example, if your pay period ends on Sunday, January 21, and your employees are to be paid on Friday, January 26, you must submit payroll by 8 PM PT on Wednesday, January 24 for your employees to receive their pay on time.
If payroll is processed after 8 PM PT on the third business day after the end of the pay period, employees will receive pay two business days after payroll is processed.
Off-Cycle and Contractor Payments
For off-cycle and contractor payments, your team members will receive pay two business days after you submit the payment.
Square Payroll Holiday Pay Outs
Square Payroll’s pay dates are only affected by holidays if the pay date itself is scheduled on a holiday or if the holiday occurs in between the cut off time for processing and the pay date.
If a holiday occurs one business day prior to your pay date, payroll must be processed one business day earlier.
If the holiday falls on a scheduled pay date, the pay date will be moved one business day earlier and therefore payroll must be processed one business day earlier.
Direct Deposit Limit
At the time of being offered two-day payroll, you were provided a direct deposit limit. If you’re unsure of your limit, please reference the initial email we sent or contact us.
The direct deposit limit applies to the amount we debit from your bank account to pay out employees via direct deposit (net pay for direct deposits). After a payment has been submitted, your available limit will be reduced by the total net pay for direct deposit from that run until the business day following that payment’s pay date. If you need to send a run with an amount that exceeds your remaining available limit, you can still pay your employees by check.
An example of a business running payroll with a $10,000 direct deposit limit and a pay period that ends on a Friday, Saturday or Sunday:
- Submit payroll on Monday, Tuesday or Wednesday for a Friday pay date.
- Assuming the run’s total direct deposit amount was $7,000, the available direct deposit limit would become $3,000 ($10,000 - $7,000) until the following Monday, one business day following the pay date.
- On Monday, the direct deposit limit will be increased by $7,000, leaving an available limit of $10,000.
An example of a business sending an off-cycle payment with a $10,000 direct deposit limit:
- Submit off-cycle payment on Monday with a Wednesday pay date.
- Assuming the run’s total direct deposit amount was $7,000, the available direct deposit limit would become $3,000 ($10,000 - $7,000) until the following Thursday, one business day following the pay date.
- On Thursday, the direct deposit limit will be increased by $7,000, leaving an available limit of $10,000.
If your limit is not high enough for your needs, please contact us and we are happy to re-evaluate it. You may need to provide additional information.
In the event a debit of your bank account is unsuccessful, we reserve the right to disable two-day payroll, which will result in employees receiving their pay 4 business days after processing payroll.
If you have additional questions on Square Payroll’s pay dates and payout schedule, contact us.