FUNDAMENTALS OF REPORTING HOLIDAY PAY
Properly reporting a member’s holiday pay can take different forms, depending on the circumstances. Here are the possible scenarios:
The member has the holiday off and this is part of the member’s regular schedule.
In this scenario, the member is paid at his/ her regular pay rate, and the holiday is considered to be part of the member’s “base” hours and pay. Thus, it is reported under the regular pay code (code 0) and no special notations are needed on the report.
The member is scheduled to work on the holiday and receives premium pay as a result.
In this scenario, the member is scheduled to work on the holiday. Because of this, he/she may receive “premium,” or extra pay. For example, a member working eight hours on a holiday may be paid at time and one half, or even double time for these hours worked. This would still be included as part of the member’s regular base pay (reported under pay code 0). However, a comment on the payroll to explain the extra pay is helpful. Comments such as “holiday worked” or “holiday pay” are generally acceptable in this case. Note: Do not “inflate” the hours base and hours paid beyond the number of hours actually worked. For example if the hours base for a reporting period is 160, do not inflate this number to 168 simply because the member worked eight hours on a holiday.
The member is called in to work a holiday that is not part of his/her schedule.
In this scenario, the holiday is NOT part of a member’s base hours. Thus, the paid hours and earnings need to be broken out as a separate entry line on the report, using pay code 1 (holiday), and reflecting the hours paid for the holiday as well as the earnings and pension deductions.
The member is paid a lump sum of unused holiday leave.
In this scenario, the member has unused holiday time that is payable in a lump sum. It is not uncommon to see members cashing out unused holiday leave at the end of a calendar year. If this occurs, the payment would be reported using the holiday pay code (pay code 1) with the paid hours listed, as well as the earning period. The earning period would commonly be January 1 through December 31 of a given calendar year. Note: Cash outs of unused holiday leave deferred more than one year after being earned, are not considered “salary” under OP&F laws and rules.
Posted 12/20/2025