Federal Government Shutdown Following Lapse in Funding

January 22, 2018

The government shut down on Jan. 20, after unsuccessfully trying to negotiate the federal budget. Paylocity will make deposits as the EFTPS system is open.


The federal government has shut down after weeks of unsuccessfully trying to negotiate the federal budget. The shutdown began at midnight on January 20th, and congress spent the weekend working to try to create a short-term spending measure so they could fund the government while they continue to negotiate the budget.

What to Expect

Paylocity will continue to make federal deposits as the EFTPS system will remain open. Any open federal tax notices may take longer to resolve as IRS will be unavailable. However, Paylocity generally places federal accounts on hold when a notice is received, so there is no need to worry if you are awaiting a federal notice resolution.

Next Steps

Congress is working to implement a stopgap extension to reinstate federal spending. At this time, we believe they will vote on the temporary measure on Monday, January 22nd. If they are unable to come to an agreement, the federal government will remain closed until an agreement is reached.

Paylocity will continue to monitor the shutdown closely and will provide updates as needed.


Thank you for choosing Paylocity as your payroll tax partner. Should you have any questions please contact your Paylocity Account Manager.

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.