* When a federal holiday falls on a weekend, it is typically observed on the nearest weekday — Friday if it falls on Saturday and Monday if it falls on Sunday.
Understanding U.S. Federal & Bank Holidays
There are eleven annual U.S. federal holidays designated by Congress when federal government offices close. Most banks and many state governments observe these same dates, which is why they are commonly referred to as bank holidays. In addition to the eleven annual holidays, Inauguration Day is observed every four years on January 20 following a U.S. presidential election. It is recognized as a federal holiday only for government employees in Washington, D.C., and certain surrounding counties of Maryland and Virginia.
How Federal Holiday Dates Are Set Each Year
Federal holidays are sometimes referred to as public holidays or legal holidays because of their widespread observance across government institutions and financial organizations. Most financial institutions follow the Federal Reserve holiday calendar when determining closures.
Some federal holidays occur on the same calendar date each year, while others are scheduled on a specific weekday, such as the third Monday of a month. Understanding these patterns helps businesses anticipate long weekends, staffing needs, and payroll processing adjustments.
| New Year's Day |
January 1 |
| Inauguration Day |
January 20* |
| Martin Luther King, Jr. Day |
Third Monday in January |
| George Washington’s Birthday |
Third Monday in February |
| Memorial Day |
Last Monday in May |
| Juneteenth |
June 19 |
| Independence Day |
July 4 |
| Labor Day |
First Monday in September |
| Columbus Day |
Second Monday in October |
| Veterans Day |
November 11 |
| Thanksgiving Day |
4th Thursday in November |
| Christmas Day |
December 25 |
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Federal & Business Holidays FAQs
Frequently asked questions about federal and business holidays
Q1: How many U.S. federal holidays are there each year?
A: There are eleven annual federal holidays designated by the United States Congress. On these days, federal government offices close and most banks follow the same schedule. Many state governments and private employers also observe these holidays when planning business operations and payroll. Unlike many other countries, there are no “national holidays” in the United States because Congress only has constitutional authority to create holidays for federal institutions. Most federal holidays are also observed as state holidays.
Q2: Are banks closed on federal holidays?
A: Yes. Most banks close on all federal holidays because they follow the Federal Reserve holiday schedule. This is why federal holidays are often referred to as bank holidays. Financial transactions, deposits, and payroll processing may be delayed when banks are closed.
Q3: What happens when a federal holiday falls on a weekend?
A: When a holiday falls on a Saturday, it’s typically observed on the preceding Friday. When it falls on a Sunday, it’s observed on the following Monday. These observed dates are when government offices and most banks close.
Q4: How do federal holidays affect payroll processing?
A: Federal and bank holidays can delay payroll processing because banks and the Federal Reserve are closed. Direct deposits, ACH transfers, and check clearing may take an extra business day. Employers often adjust payroll schedules or submit payroll early to ensure employees are paid on time.
Q5: Are employers required to give employees federal holidays off?
A: Private employers are not legally required to provide paid time off for federal holidays. However, many businesses choose to offer holiday pay or close operations based on their company policies and staffing needs.
Q6: Why do businesses track federal and bank holidays?
A: Businesses use federal and bank holiday schedules to plan payroll processing, staffing, shipping, and office closures. Knowing these dates in advance helps avoid payment delays, overtime issues, and scheduling conflicts.
Redcort Software Inc. assumes no liability and makes no warranties regarding the information provided on these pages. This content is for reference only and does not constitute tax or legal advice. Please consult a qualified tax, legal, or other professional to determine how these dates may apply to your situation. Additional federal holiday information is available from the U.S. Office of Personnel Management.