How do I pay my employees holiday rates for visits when I run payroll?

In order for an employee to receive holiday pay for a visit when your organization runs payroll, the following conditions must be met:

1. The employee must be eligible for holiday pay according to their employment type. 
2. The day the visit takes place must be configured as a holiday. 
3. The service code of the visit must have a holiday pay code set. 

Set up holiday pay

1. Check the employee's employment type in the employee profile>employment>employment settings>employment type.
   
   
   
   
2. Check that the employment type is eligible for holiday pay in accounting settings>employment types - see here.
3. Check that the service code of the employee's visit has a holiday pay code setting - see here.
4. Check that the day of the visit is configured as a holiday - see here. 

Run payroll

When you run payroll, the holiday pay code on the service code will be used for visits assigned to employees with an employment type that can receive holiday pay.

In the example below, January 1 is configured as a holiday, and the employee is eligible for holiday pay. As a result, the holiday pay code (PAY-HOLIDAY) was used in place of the regular pay code (PAY-REG) for the client visit on January 1. 

Important note: holiday pay is based on the visit start date. As a result, any visits that begin on a non-holiday but end on a holiday will use the regular pay code rather than the holiday pay code. For instance, in the example above, the regular pay code was used for a visit beginning at 11 pm on December 31 but ending at 5 am on the January 1 holiday. 

Holiday pay and overtime

When an overtime rule is in effect, overtime will be calculated regardless of whether the date of the visit is a holiday. 

Any visit hours that occur on a holiday before the overtime rule is met will use the holiday pay code. Once the maximum number of hours allowed by the overtime rule is reached, any additional visit hours on the holiday will use the overtime pay code. 

In the example below, October 23 has been configured as a holiday, and the overtime rule has been set to 40 hours per 7 days. Before the October 23 holiday, the employee worked 38 hours in the last four days (three visits 10 hours long, and one visit 8 hours long). On October 23, the employee had another 10-hour visit. 

In the payroll run, the first 2 hours of the October 23 visit use the holiday pay code (HOLLK). Since the employee has then met the overtime threshold of 40 hours a week, the last 8 hours qualify as overtime and use the overtime pay code (OTLK). 

Learn more

• How do I create employment types?
• How do I set up/edit/disable service codes?
• How do I set up holidays?

Related to

• adp
• "adp"