Add holiday pay
Gusto does not automatically calculate holiday pay for hourly employees when you run payroll. If you pay at a higher rate for holiday hours worked, enter this using the following steps:
- Click the Run Payroll tab.
- Click +Overtime or the total hours (TH) field if the hourly employee is using multiple pay rates.
- Input the hours worked for holiday pay in the OT (Regular Overtime) field.
- Click Add Personal Note to indicate the holiday payment on the employee's paystub.
- Finish running payroll.
This will pay the employee time-and-a-half for holiday hours. If you pay double overtime for working holidays, put these hours in the DOT (Double Overtime) field instead.
Note: Many employers pay time-and-a-half for holidays, but this is not legally required. If you pay holiday hours the same as regular hours, simply put all of the employee’s hours in the RH (Regular Hours) field.
Report holiday pay for no hours worked
There may be situations where employees did not actually work on a holiday, but you'd like to compensate them for the holiday at their regular rate of pay. In order to not report these holiday hours as regular hours worked, you can instead add these holiday hours as vacation hours. Please see our article on paid time off for more details on setting up vacation policy.