All entities are stretching payments

Date: 2014-09-05 11:38 pm (UTC)
The accounting folks are actually clever and advertent. In the 'good old' days, companies would cut paychecks the day before the holiday, knowing they had 'float,' and the checks would not reach their bank until after the holiday. Even when they had the funds to cover the checks, they could get several days of interest on those funds. Today, with Electronic Transfer of Funds, the money is out of their accounts almost before they hit 'send.' My federal retirement 'checks,' which are due on the first and used to be issued on the Friday before if the first was on a weekend or Monday holiday, are now issued the first bank day AFTER, which can mean the fourth, if the first is a Saturday of a three-day weekend. However, the automatic withdrawals which depend on that money being in my account are made during the weekends and on holidays just the same.
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