What You Need to Know About Holiday Pay

Posted on November 1, 2022

payroll ct

The holidays are just around the corner, and that means business owners have to think about bonuses and holiday pay for their employees. Payroll in CT can be tricky under normal circumstances, but especially so when you add in the variables of holiday pay. And those variables will change depending on what kind of business you run. If all the complexities of holiday pay are more than you can handle during the holiday season, don’t worry! ABC Payroll is here to help you.

Here’s what you need to know about holiday pay and your CT payroll needs.


Paid Days Off

Federal law does not require private employers to give their employees paid days off for holidays, but most employers choose to do so. For salaried employees, this does not usually change the way you calculate pay, but it may for hourly employees. Because they are not coming in to work on the holiday, they do not clock in or out. It is important to make sure that your payroll software is programmed to update your employees’ paychecks to include the paid days off.


Working on Holidays

If you run a business that requires employees to work on a holiday, you need to ensure that they are compensated appropriately. Again, there are no federal laws about extra pay for working on holidays, but most employers do it anyway. It’s important to update your payroll software to include the increased rate of pay on those dates.


Creating a Company Policy

More than anything, it’s essential that your employees know what the company’s policy is regarding holiday pay. You don’t want to spend your holiday season dealing with complaints and misunderstandings about compensation. If you have a clear policy about which holidays are paid days off and how much extra pay employees receive for working on holidays, everyone will be much happier and more comfortable in their working environment.


Simplify Your CT Payroll with ABC Payroll

You don’t want to spend the holidays worrying about payroll. To make everything go smoothly this holiday season, turn over your payroll needs to ABC Payroll. We handle payroll in CT, NH, and MA, so you can trust us with your business needs. Focus on running your business and let us deal with the rest.


Contact us at 978-251-3003 to learn more about what we can do for your business.