Payroll: Holidays

Holidays will be handled differently depending on whether you are using HR Hub Basic or HR Hub Standard.

Holidays for HR Hub Basic and Salaried Employees in HR Hub Standard

Holidays for Hourly Employees in HR Hub Basic will be handled the same way they are for salaried employees in general. To pay Holiday Pay, set up a Leave Type and name it Holiday. If you have more than one Holiday policy, you will need to set up a Leave Type for each policy.

In the Earn Method section of the Leave Type, select Each Year as the Period. Calculate the total holiday hours that your Agency pays for the year and enter the total in the Earned per Period. Select Immediate from the Availability dropdown.

In the Carry Over section, select None for the Type and Yearly for the Basis.

For each employee that is paid for the holiday, add the appropriate Holiday Leave Type to the Employee. When a holiday is within a pay period, the Payroll Admin will enter the number of hours that the employee is paid for the Holiday in the Holiday Leave Type. Those hours will be deducted from the Available Holiday Hours and added to the Used Holiday Hours in the employee's Leave Status.

If an employee is hired during the year and they are eligible for holidays, add the holiday hours they will be paid the remainder of the year to the Available column in their Leave Status on their employee record.

HR Hub Standard for Hourly Employees

If you have HR Hub Standard and use TimeTracker, you can configure holidays for your hourly employees so they get paid automatically based on the rules you have configured. The purpose of holidays is so that the system calculates pay and overtime correctly with minimal manual work from you.

Create Holidays

First, create your Holidays in HR > Settings > Holiday. Click Add Holiday to configure a new Holiday.

  1. Label. Add a label to describe the holiday.
  2. Type. Choose Dynamic if the date changes each year, such as Thanksgiving. Choose Static if the holiday falls on the same date each year, like Christmas.
  3. Month. Select the Holiday Month.
  4. Position or Date. If the holiday is dynamic, choose the position on which it falls. If the Holiday is static, choose the date.
  5. Weekday or Holiday Day. If the holiday is dynamic, choose the weekday on which it calls. If the holiday is static, choose the Holiday Day that will be celebrated. For example, if the holiday falls on a weekend, it may be celebrated on the nearest weekday.
  6. Click Add to create your holiday.

Create a Holiday Policy

Once you have created holidays, you can group them in a Holiday Policy. The Holiday Policy defines how working on holidays will get paid if worked. You can create multiple Holiday Policies using the same Holidays. For example, your police force might get paid differently for working Christmas than your office staff. In this case, you will create two different holiday policies.

To create a Holiday Policy, go to HR > Settings > Holiday Policy. Click Add Holiday Policy to configure a new Holiday.

  1. Label. Add a label to describe the Holiday Policy.
  2. Work Hours. Select how any hours worked on the holiday should be paid.
    1. Holiday + Worked Hours: With this selection, the employee will be paid for all hours clocked in addition to the "Holiday Hours Paid." So if they work 4 hours and the Holiday Hours are 8 hours, they will get paid a total of 12 hours.
    2. Worked Hours: With this selection, the employee will be paid for worked hours only. In this case, there are no default Holiday Hours paid. However, you may choose to pay worked hours directly at an overtime rate using the additional options below.
    3. Holiday - Worked Hours: With this selection, the employee will be paid for the hours they worked in addition to holiday pay up to the Holiday Hours Paid. So if they are paid for 8 Holiday Hours and worked 3 hours, they will be paid for the three hours worked plus five Holiday Hours.
Holiday Hours are always paid at the regular rate, regardless of whether the hours have crossed the threshold for overtime. Worked hours on a holiday are counted toward the Regular Hours Threshold if they don't have a Holiday Overtime Rate. If the Overtime Rate for the Holiday is enabled, hours worked on the Holiday are paid at the Overtime Multiplier defined for the holiday, regardless of whether the hours have crossed the threshold for overtime. This applies until the maximum overtime limit for holiday policy is reached.
  1. Pay as Overtime. Turn this toggle on if hours worked should be paid as overtime, regardless of the overtime threshold.
    1. If Pay as Overtime is on, select the Overtime Rate that should be paid: 1.5x, 2x, or 2.5x.
    2. If Pay as Overtime is on, enter the Maximum Overtime Hours allowed.
  2. Holiday Hours Paid. Enter the number of hours that should be paid for the holiday pay.
  3. Overtime Eligible. Turn this toggle on if the holiday hours worked should get included in the overtime threshold. (Holiday hours count as hours worked.)
  4. Add Holidays. Select the holidays included in the policy by checking the holidays and clicking on the arrows to put them in the correct boxes for Included and Excluded.
  5. Click Add to create the Holiday Policy.

The Holiday Policy can now be associated with an employee.

Associate Holiday Policies with Employees

For each Employee, open the Timesheet tab. Select the Holiday Policy associated with that Employee from the dropdown and click Update.

Holiday FAQ

How do I handle holidays like Easter?
If your agency gives these days off, set them up as a static date and make a change to that date each year depending on when Easter lands on the calendar.
How do I set up holidays that don't pay a full day?
If you have a holiday that only pays part of a day, like 4 hours, you will have to set up a separate Holiday Policy and assign it to your employees. The Holiday Policy as a whole defines the number of hours employees are paid for a holiday. For example, all holidays except for Christmas Eve are 8-hour holidays. In this case, you will need to set up a Holiday Policy with of the holidays that pay 8 hours for the holiday. You will then set up a second Holiday Policy for holidays that pay 4 hours for the holiday. Employees who are eligible for both would have two Holiday Policies assigned to them.
How do Holiday Overtime Rates work?
If an Employee works on a holiday, the hours worked will be paid at the Holiday Overtime Rate, even if that rate is different than the regular Overtime Rate for the employee. If holiday hours are paid at an Overtime Rate, the holiday hours paid at the Overtime Rate will not be included in the total hours calculation to determine the Overtime threshold for that employee. Only the hours worked that are not paid as Overtime are counted to reach the overtime threshold.
How does Holiday Overtime work with Shift Overtime?
Holiday Overtime will always trump Shift Overtime. For example, if an employee works a holiday with a Holiday Overtime Rate of 2x, and a shift falls within that holiday that pays an Overtime Rate of 1.5x, the employee will be paid the Holiday Overtime Rate.

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