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Set up a company 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. Note: employees will be paid for the full 8 hour day. 

Create a holiday pay policy

  1. Click the Time tools section and select Time off.
  2. Click the Polices tab.
  3. Click the Holiday Pay tile.
  4. Select your company's paid federal holidays.
    • We'll automatically count them as paid time off when you run payroll.
  5. [Complete and Concierge only] 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.
    • If a custom holiday date range overlaps with a preexisting Federal holiday, Gusto will not double-count the holiday hours for that day.
    • The Custom Holiday PTO feature is available to Complete and Concierge customers - upgrade your plan at any time.
  6. Review all holidays and click Continue.
  7. Add employees you'd like to enroll in the Paid Holiday policy.
  8. Click Create Policy.

You can now sync the holiday pay schedule to your personal calendar if you would like. Employees will also be able to see the holiday schedule in their Gusto dashboards.

Federal holidays selected will automatically apply to all future years. Custom paid holidays will need to be created individually for each year. You can create holidays up to three years in advance.

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