## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/us/payroll/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Direct Deposit Processing Speeds

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Processing speed refers to the time it takes for Zoho Payroll to debit funds from your business bank account and deposit them into your employees’ bank accounts once you approve a payroll. It also determines how close to the pay date you can approve a payroll. That is, up to 3 or 2 business days in advance, depending on your organization’s processing speed.

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## Types of Processing Speeds

Zoho Payroll offers three types of processing speeds:

*   [3-day processing speed](/us/payroll/help/employer/direct-deposit/processing-speeds.html#3-day-processing-speed)
*   [2-day processing speed](/us/payroll/help/employer/direct-deposit/processing-speeds.html#2-day-processing-speed)
*   [1- day processing speed](/us/payroll/help/employer/direct-deposit/processing-speeds.html#1-day-processing-speed)

**Note:** You need to [set up direct deposit for your employees](/us/payroll/help/employer/direct-deposit/employees.html) before you can use these processing speeds.

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### 3-Day Processing Speed

All organizations start with the 3-day processing speed by default.

*   **Approval deadline:** At least 3 business days before payday.
*   **Fund debit date:** 1 business day before payday.
*   **Salary deposit date:** On payday.
*   **Example:**
    *   If payday is Friday, you must approve the payroll by Tuesday. Your business bank account will be debited on Thursday, and employees will receive their salaries on Friday.

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### 2-Day Processing Speed

You may become eligible for 2-day processing speed based on your organization’s payroll history and bank verification. When eligible, your processing speed will be updated automatically.

*   **Approval deadline:** Up to 2 business days before payday.
*   **Fund debit date:** 1 business day before payday.
*   **Salary deposit date:** On payday.
*   **Example:**
    *   If payday is Friday, you must approve the payroll by Wednesday. Your business bank account will be debited on Thursday, and employees will receive their salaries on Friday.

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### 1-Day Processing Speed

You may also become eligible for 1-Day Processing based on your organization’s payroll history and bank verification. When eligible, you can purchase this as an add-on.

This is an employee-specific add-on. That is, you only need to purchase add-ons for employees who are paid via direct deposit. For example, if 4 out of your 10 employees are paid through direct deposit, you can buy 4 add-ons.

Learn how to [purchase the 1-day processing speed add-on](/us/payroll/help/employer/subscriptions/#1-day-processing-speed-add-on).

Once purchased, the payrolls in your organization will be the below timelines:

*   **Approval deadline:** Up to 1 business day before payday.
*   **Fund debit date:** On the day you approve payroll (1 business day before payday).
*   **Salary deposit date:** On payday.
*   **Example:**
    *   If payday is Friday, you must approve the payroll by Thursday. Your business bank account will be debited on Thursday, and employees will receive their salaries on Friday.

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## How Holidays Affect Processing Speeds

Weekends and US federal bank holidays are not considered business days. When a scheduled payday falls on one of these days, it will move to the previous business day. The approval deadline also shifts accordingly.

**Examples:**

1.  **3-day processing speed:** If payday is a Monday bank holiday, payday shifts to the previous Friday. You must approve the payroll by the preceding Tuesday.
2.  **2-day processing speed:** If payday is a Monday bank holiday, payday shifts to the previous Friday. You must approve the payroll by the preceding Wednesday.
3.  **1-day processing speed:** If payday is a Monday bank holiday, payday shifts to the previous Friday. You must approve the payroll by the preceding Thursday.

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## Things to Keep in Mind

*   Weekends and US federal bank holidays are not considered business days.
*   Always maintain sufficient funds in your bank account (covering both salaries and taxes) before the fund debit date.
*   Payment failures due to insufficient funds or incorrect account details may affect your eligibility for faster processing speeds.