Archives October 2020

If a scheduled payday falls on a holiday, some states require payment on the preceding business day. Absent such a requirement, employers generally have the option of paying employees on the day before or after the holiday. If your check date falls on a bank holiday and you wish to pay employees the day before, adjust your check date to avoid delaying payroll delivery. If you select this option, TimeSaver uses the worked information (site, department, position, and rate) rather than the employee’s home information for system-generated primary holiday pay codes. This option does not apply to secondary and replacement system-generated holiday pay codes.

Count hours worked accurately.

• When this check box is selected, selections on the Union Codes tab are not required.
• However, there are exceptions in states like Massachusetts and Rhode Island, where some employers may be required to provide premium pay regardless of how many hours the employee worked.
• While some states have laws that restrict certain types of businesses from opening on a holiday, these laws don’t require employees to be paid for this time off.
• A nondiscretionary bonus is announced to employees in advance typically to encourage them to work more efficiently and/or to remain with the company.
• For more detailed explanations of the fields described in the following steps, see the Holiday Pay – Union Codes Tab topic.
• You can also use the (navigation arrows) to move from one record to the next.

When you select this option, the Pay Code, Rate Factor, OT Rate Factor, and  DT Rate Factor fields are required. When you select the Generate Pay Code option, the fields in the Generate Pay Code Options area are available and the Reassign Hours Options area is grayed and unavailable. From this area, select one of the following methods of awarding holiday pay. When you select a Called Off Pay Code option, you must also select either the Work Scheduled Day Prior to Holiday Required check box or the Work Scheduled Day After Holiday Required check box, or both.

Holiday Pay and Year-End Bonuses: Are You Aware of the Rules?

Day, President’s Day, Juneteenth, Columbus Day and Indigenous Peoples’ Day, and Veterans Day. If two or more holiday pay records have the same date but different settings for this field, TimeSaver uses the setting on the Time Calc tab in System Setup. Select this check box if you want the reassigned holiday hours to count toward weekly overtime and doubletime. The rate factor entered in this field overrides the standard rate factor assigned to the selected pay code.

Make deductions from exempt employees’ pay for company holidays.

For example, if you decide at the end of the year to surprise employees with a bonus, this would generally be considered a discretionary bonus. D. Federal law doesn’t require premium pay for work on a holiday, but some state laws do. Under federal law, there’s generally no requirement to pay non-exempt employees a premium for working on a holiday, unless doing so results in the employee working more than 40 hours in the workweek. As mentioned above, when determining an employee’s regular rate of pay for the purposes of overtime, you must include nondiscretionary bonuses. Unless obligated by contract or agreement, private employers are generally not required to provide paid holidays to non-exempt employees.

• Employers must include these payments when calculating the regular rate of pay if otherwise required under the FLSA (see above).
• When you select this option, the Pay Code, Rate Factor, OT Rate Factor, and  DT Rate Factor fields are required.
• As a practitioner, you can create and edit holiday programs for your company.
• Once a holiday program has been created, you can add and deleted specific holidays within that program or make changes to the definition of each holiday.
• For federal taxes, when an employee receives $1 million or less in supplemental wages during 2018 and those wages are identified separately from regular wages, the flat withholding is 22 percent.
• Employers have many important responsibilities, including compliance with federal, state and local minimum wage requirements.

Q: If we remain open on a holiday, am I required to pay non-exempt employees a premium for working that day?

Enter a rate factor to apply to regular hours worked when the selected pay code is awarded. For example, let’s say you select SICK as the Called Off Pay Code, and an employee is scheduled to work but calls in sick instead. Because the pay code entered by the manager matches the Called Off Pay Code, the employee will not receive holiday pay. The value you enter in this field determines the minimum days of service required for an employee to be eligible for the holiday pay code. However, if an employer gives a turkey, ham, or other item of nominal value for the holidays, it’s generally not considered taxable income. With Labor Day approaching, employers may adp holiday pay have questions about providing time off to employees and the pay requirements for employees who do work on Labor Day.

To help you separate fact from fiction, we’ll debunk seven common myths related to the minimum wage. Use the General tab on the Holiday Pay page to define the parameters that determine which employees are eligible for holiday pay. You can also print holiday pay page reports directly from the search results grid by selecting the appropriate holiday pay records from the grid and clicking Print. When this check box is selected, selections on the Union Codes tab are not required. The earliest valid holiday date is the first day of the month prior to the current month. The selected weekday, month, and year display beside the Holiday Date field.

Under federal law, non-exempt employees are entitled to overtime pay (at 1.5 times their regular rate) whenever they work more than 40 hours in a workweek. However, paid time off, such as paid holidays, doesn’t count towards hours worked when determining whether overtime is due, unless you have promised otherwise. However, there are exceptions in some states where employers may be required to provide premium pay regardless of how many hours the employee worked.

None—If any of the hours worked fall outside the holiday date, none of the hours worked during a shift will be paid at the holiday rate. If you select the Reassign Hours option in the Generation Method field, make selections in the following fields. If you select the Generate Pay Code option, make selections in the following fields.