Set up a holiday pay policy

You can keep track of paid holidays for when your employees do not work but receive regular wages and Gusto will automatically pay your team for those holiday hours when you run payroll.

Just like a sick policy, this type of policy should be added if employees are not working but being paid for their time away.

Important: If you'd like to pay overtime or double overtime for holidays, reference this article.

Create a Paid Holidays policy

  1. Navigate to the Time Off section of your account.
  2. Click Paid Holidays to create a new holiday pay policy.
  3. Select your company's paid federal holidays.
    • We'll automatically count them as paid time off when you run payroll.
  4. Click Add Custom Holiday if you'd like to add your own company holidays here (i.e. day after Thanksgiving).
    • Name your holiday
    • Enter a date range for the holiday and click Save.
      • Note: If a custom holiday date range overlaps with a preexisting Federal holiday, Gusto will not double-count the holiday hours for that day.
  5. Review all holidays and click Continue.
  6. Add employees you'd like to enroll in the Paid Holiday policy.
  7. Click Create Policy.

Paid holidays will now appear during step two of the payroll run, previews and reports, in paid time off requests, and on employee's paystubs. Previous years' schedules will appear in the top right corner of the Holiday Schedule for review.

You can choose to sync the holiday schedule to any applicable personal calendars.  Employees will also be able to see the holiday schedule on their Gusto dashboards.

If you need to review, edit, or delete the holiday pay policy follow the steps below.

Review, edit, or delete a custom holiday 

  1. Navigate to the Time Off section of your account.
  2. Click the Paid Holidays Policy.
  3. Click edit next to the custom holiday.
  4. Review or edit the custom holiday title and date.
  5. Click Update holiday to save changes or exit.
    • If you need to delete the custom holiday entirely, click Delete Custom Holiday.

 Review or remove a paid Federal holiday

  1. Navigate to the Time Off section of your account.
  2. Click the Paid Holidays Policy.
  3. Click edit under Federal Holidays to change the current settings.
    • Changes made to Federal Holidays will only affect future dates.
  4. Uncheck or check the desired Holiday name.
  5. Click Save.

 Add or remove employees from the Paid Holiday Policy

  1. Navigate to the Time Off section of your account.
  2. Click the Paid Holidays Policy.
  3. Click edit under Employees.
  4. Add or remove employees using the or X next to the employee name.
  5. Click Save.

 Delete the Paid Holiday Policy

  1. Navigate to the Time Off section of your account.
  2. Click the Paid Holidays Policy.
  3. Click the red Delete Policy button to remove the policy entirely.
    • You will no longer be able to access the policy if you proceed.
  4. Click Yes, delete policy.

 FAQS

Q: Can I backdate the start of the Paid Holiday to begin on a date earlier than today? 

A: No. If you need to input holiday hours for a work period in the past, before the setup of the policy, you'll need to enter the hours manually in the Holiday Pay field during step 2 of the payroll run.

Q: Will holidays rollover to future calendar years?

A: Federal holidays selected will automatically apply to all future years. Custom paid holidays will need to be created individually for each year. 

Q:  Can I add custom paid holidays for calendar years in the future?

A:  Yes, up to three years from the current calendar year.

 

 

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