Payroll Processing Q & A: Holiday Pay

By April 8, 2015Blog

We hear a lot of questions as payroll processing experts here in Dallas, TX.  Here’s one about how to adjust payroll for employees who work on a holiday

Question: What should we pay employees who work on a holiday?

Answer: While there is no federal legal requirement to pay employees anything above and beyond their actual hours worked, there are a few states, such as Massachusetts, that do require additional pay in specific circumstances (check out our handy mapping tool for laws and documents state-by-state). Even if you are not in one of those states, it can be nice to financially reward employees for working on a holiday.

A few suggestions for doing so are:

  1. pay time and a half for all hours worked on the holiday,
  2. add an extra 8 hours to the checks of employees who worked, or
  3. place 8 hours into a “floating holiday” bank for employees who worked so they can take time off at a later date.

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