What's holiday pay?
Holiday pay is compensation for holidays, like Christmas Day, when a business may be closed and the employee is allowed to take the time off from work.
Though the Fair Labor Standards Act (FLSA) doesn't require employers to pay employees for time not worked, many employers provide holiday pay as a benefit and follow the federal reserve holiday schedule, offering employees up to nine paid holidays each year.
To set up a Holiday Pay type for an employee:
- Go to the Employees tab.
- Click an employee's name.
- On the employee's overview page, look for the Pay section and click Edit.
- Scroll down to the What additional ways do you pay? section and click to select the Holiday Pay checkbox.
- Click OK.
Next time you create a paycheck for the employee, the Holiday Pay type appears. Simply enter the total holiday pay hours for the pay period and our payroll service includes the hours when calculating the paycheck.