Hi there, @Becky118. Happy to walk you through the steps of adding holiday pay for your employees.
We'll need to go through each employee's profile and add the Holiday pay.
Since holiday hours are not classified as hours worked, they are excluded from the calculation for accruing vacation or sick leave. Additionally, in states with a workers' compensation tax tied to hours worked, holiday pay is not factored into the basis for this tax.
Here's how:
- Go to the Payroll menu.
- Navigate to the Employees tab.
- Choose the employee for whom you want to add holiday pay.
- Scroll down to Additional Pay Types.

- Click the + Add and select Holiday pay.
- Choose the effective pay period you prefer and the end pay period.
- Once done, click Save.
Please feel free to add a comment below if you have any other questions.