Payday is on a holiday. Can I legally pay the next day?

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Question:

Hello! I’m looking for a little advice with a payroll situation I’m going to have here in a couple weeks. We are a biweekly employer in Indiana and our first pay date of 2025 falls on January 1st. Lovely, right? So, I will be working on payroll on the 30th and 31st of December, but I’m not sure how to handle what day to actually pay people. If I pay everyone on December 31st, then all our books will be thrown off because it will be adding a 27th payroll in 2024. But I can’t pay anyone on the 1st because of it being a holiday. Am I allowed to just tell everyone they will be getting paid a day late and pay everyone on the 2nd? Thank you.

Answer:

Yes, you can pay on the second unless your policy dictates otherwise. No worries. I would add that to the policy so employees are not confused moving forward.

I hope this helps.
Lisa Smith, SPHR, SCP
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