Prep for 2022 is underway, and that includes thinking ahead to holidays. The new federal holiday, Juneteenth, will require some careful thought for employers.
In 2021, you had zero time to prepare. President Biden signed the Juneteenth National Independence Day Act on June 17, making June 19 a legal public holiday.
To complicate matters, June 19 fell on a Saturday in 2021. Therefore, the holiday was observed on Friday, June 18, 2021.
That raised questions. What would IRS require of semiweekly tax depositors, given the June 18 due date already on the 2021 calendar? Would banks keep their doors open so employees paid by direct deposit would receive their wages on time? Would your peers make a snap decision, giving employees an extra holiday?
4 ways to get ready for the holiday
You can mark your calendar now for Monday, June 20, 2022. Reason: Juneteenth will fall on a Sunday next year.
Here are four considerations:
- Juneteenth meets the IRS definition of “legal holiday.” The IRS mirrors Washington, DC, and in 2021, the mayor there issued a press release saying Juneteenth would be observed. So, in 2022, Payroll can look forward to a break from making tax deposits to IRS that day.
- It’s likely that more states will add Juneteenth as a holiday. That’d shift your tax responsibilities there, too.
- The Federal Reserve has already added Juneteenth National Independence Day to its list of banking holidays, noting its observance in 2022 on June 20. So for companies with a paydate that’d normally occur on that Monday, consider whether you’ll pay employees on the Friday before the holiday.
- Businesses don’t need to offer employees time off, paid or unpaid, on federal holidays. But now’s the time to discuss whether your organization will make any scheduling adjustments – for Juneteenth or other holidays – during 2022.