How To Factor Double-Time Wages For Holiday Pay Stubs?
Holidays don't have to mean HR headaches! It can be difficult and time-consuming to factor in double-time wages when you're processing holiday pay stubs for your company's employees.
Luckily, this process can be streamlined by following a few simple steps. Read on to learn more about how you can make processing holiday pay as easy as processing regular pay.
1. Be Clear on Holiday Pay Requirements
Believe it or not, companies are not required to pay their employees special rates or double-time for holiday hours worked. The Fair Labor Standards Act details all of this. Research your company's standards to make sure you know what holiday pay requirements you have outlined for your employees.
2. Distinguish Between Holiday Hours and Double-time
If your company does offer different pay scales for holiday hours, make sure you distinguish between hourly holiday rates and double-time. Your company, for example, may just pay double-time for holiday hours worked. Or employees may be paid a stipend or bonus for a certain amount of hours worked.
3. Know Who is Getting What
Part-time and full-time employees will have different holiday pay requirements depending upon your company's standards. In most cases, full-time employees alone will receive paid vacation or holiday days. Part-time employees may receive holiday stipends or no additional bonuses.
Begin by identifying the holiday pay terms for each category of employee, and separating these categories as you proceed with payroll.
4. Calculate Employee Wages for Holiday Hours Worked
For employees receiving holiday hours wages, identify holiday hours worked and pay the employee at his/her holiday rate. This may also mean paying the employee his/her standard rate for holiday hours worked, depending upon company standards.
5. Calculate Employee Wages at Double-time
If certain employees are paid double-time for holiday hours worked, you may simply need to just double their regular hourly rate for those holiday hours specified.
If employees receive double-time in addition to hours worked (i.e., they receive paid vacation on top of double-time), compensation will be as follows:
(hours worked * regular pay rate) + [hours worked * 2(regular pay rate)]
6. Utilize Effective Software to Stay Organized
At the end of the day, it's important to use the right tools in order to effectively calculate double-time wages in holiday pay stubs. At ThePayStubs, for example, we help you to easily generate pay stubs and validate all of your efforts by professional accountants. This reduces time-consuming work on your end and ensures no calculation errors.
By using an effective software, you'll also be able to prove (upon need) that holiday hours were paid with proper documentation.
Reducing Holiday Pay Stubs Stress
Factoring in double-time wages in holiday pay stubs doesn't have to be what you dread. Spend more time enjoying the holidays and less time stressing about payroll by knowing holiday pay requirements for your company, which employees qualify, and the right calculations.
To make sure you're staying on top of everything, generate pay stubs using ThePayStubs. Our personalized support can streamline your holiday payroll process in no time. Get started now!