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. Employers enter statutory holiday pay hours in paychecks if there are any stats holidays in the pay period.
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. Employers often follow the federal reserve holiday schedule, offering employees up to nine paid holidays each year.
To add holiday pay
The next time you create a paycheck for the employee, the Holiday pay column appears. Make sure you repeat these steps for any other existing employees who receive holiday pay.
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