Should a holiday entry show as "unpaid time off"? Wondering if this might reduce a salaried employee's paycheck amount?

I'll provide a few information about holiday entry and guide you on how to set this up, J_Daniel.

Holiday premium pay is equal to an employee's rate of basic pay. Normally, employees who work on a holiday receive their rate of basic pay, plus holiday premium pay, for each hour of holiday work. Therefore, this makes it a paid time off and increases an employee's paycheck for those who are receiving salaries.

You can set up a holiday pay type so you can pay your employees for that particular entry. However, all of this will still depend on the policy. You'll want to reach out to your accountant if you need more guidance regarding this matter. To set up a holiday pay, follow the steps outlined below:

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Pay types, click Start or Edit.
   
4. Choose the pay types you want to add or edit:
   • Pay type ▼ for hourly, salary, or commission only.  If your employee has multiple hourly rates, select Hourly 2 or Another hourly pay type. You can rename these hourly pay types.
     
   • Common pay types ▼ for overtime, holiday pay, bonus, or commission.
   • Time off pay policies ▼ for paid time off like sick or vacation.  Check out Set up and track time off in payroll to set up or change policies.
   • Additional pay types ▼ for other pay types like tips, reimbursement, allowances, or fringe benefits.
5. Enter the rates for each pay type.
6. You can rename some of the pay types. Go to the Edit ✎ menu next to the pay type.
7. Hit Save.

On top of that, learn from this article how you can send a scheduled or unscheduled payroll so you can pay for your employees: Create And Run Your Payroll.

Please get back to us if you have any questions about holiday pay. The Community is always here to assist all your needs 24/7.