2021’s legal and banking holidays, courtesy of IRS

A big part of year-end prep includes getting ready for the next year, which means figuring out where legal and banking holidays fall in 2021. 

As you know, it’s critical for your finance team to start preparing for the new year’s holidays as soon as possible. That way, these days won’t negatively affect your payroll cycle, payment schedules, tax deadlines and more.

First, mark your calendars

Here’s a quick rundown of the legal and banking holidays your finance team will need to know for 2021, outlined in IRS Publication 509, Tax Calendars and The Federal Reserve’s Holiday Schedules:

• Friday, Jan. 1: New Year’s Day
• Monday, Jan. 18: Martin Luther King Jr. Day
• Monday, Feb. 15: Washington’s Birthday/Presidents’ Day
• Friday, April 16: District of Columbia Emancipation Day
• Monday, May 31: Memorial Day
• Monday, July 5: Observation of Independence Day
• Monday, Sept. 6: Labor Day
• Monday, Oct. 11: Columbus Day
• Thursday, Nov. 11: Veterans’ Day
• Thursday, Nov. 25: Thanksgiving
• Friday, Dec. 24: Observation of Christmas Day

Note that all of these holidays are legal and banking holidays, except for District of Columbia Emancipation Day, which is only a legal holiday.

Get ahead of issues

Your company’s operations – from its check run schedule to its payroll processing cycle – is unique. That means your finance team will want to start looking at where these legal and banking holidays fall during the workweek and if there will be any scheduling issues to address.

Also, when the new year kicks off, it’d be smart for your finance team to notify employees if there will be any changes to your normal cycles and routines based on when the legal and banking holidays fall. And of course, your team will want to send out reminders to employees as those dates get closer, so everyone stays on track and timely.