We see business pay anywhere from 1 to usually no more than 10 days in arrears.
However, I wouldn’t necessarily be working to a delayed deadline, instead I would suggest working out how long you need to process payroll and allowing enough time.
I would also allow for the growth of the business, eg if they have 5 staff, the next day might be enough, but what if they have 50 staff, a few days might be required to collaborate all the data required.
We recently wrote an article about the best day to process payroll.
We researched many different industries including the medical industry, typically 3 days after the end of the pay period is common practice and easily enough time to allow for unexpected delays like public holidays.
This is assuming you’re using modern solution like cloud timesheet and payroll software.