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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.

Create a holiday pay 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.
    • 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.

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.