Payroll Tool

US Holiday Payroll Calculator 2026

Calculate gross pay for paid time off (PTO) or worked holidays at premium rates.
$
Do not include the holiday hours here.
Regular Pay
$0.00
Overtime Pay (1.5x)
$0.00
Holiday Pay
$0.00
Gross Weekly Pay
$0.00
FLSA Rule: Unworked paid holiday hours do not count towards the 40-hour threshold for weekly overtime.

How does Holiday Pay work in the US?

If you search for a holiday payroll calculator or a holiday pay calculator in the United States, you will quickly discover that the rules are very different from Europe. Here, "holiday pay" refers to wages earned on federal holidays like Thanksgiving, Christmas, or Labor Day.

The most important thing to know is that under the Fair Labor Standards Act (FLSA), holiday pay is not mandatory. Any premium pay or paid time off you receive is dictated entirely by your company's policy or union contract.

Scenario 1: You get a Paid Holiday (and don't work)

Many companies offer 8 hours of paid time off for major holidays. The biggest confusion arises when calculating weekly overtime. Unworked paid holiday hours do NOT count towards your 40-hour overtime threshold.

  • Example: You work 35 hours from Tuesday to Friday, and receive 8 hours of holiday pay for Monday. Your total paid hours are 43.
  • The Result: You receive 43 hours of Straight Time pay. You get zero overtime pay because you only actually worked 35 hours.

Scenario 2: You Work on the Holiday (Premium Pay)

Retail, healthcare, and hospitality workers often work on holidays. To incentivize staff, employers frequently offer a premium rate, such as "Time and a Half" (1.5x) or "Double Time" (2.0x). Use the "Worked on Holiday" tab in our holiday calculator above to instantly figure out your gross pay based on your employer's specific multiplier.

Frequently Asked Questions

Does FLSA require employers to pay for holidays?

No. The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave, or federal holidays. Holiday pay is entirely a matter of agreement between an employer and an employee.

Do holiday hours count towards overtime?

No. If you receive 8 hours of holiday pay but did not actually work those hours, they do not count towards the 40-hour threshold for overtime. Only hours actually worked count towards FLSA overtime.

How do you calculate holiday pay if you work on a holiday?

If your company policy offers premium pay (e.g., time and a half) for working on a holiday, you calculate it by multiplying your standard hourly rate by the premium multiplier (e.g., 1.5), then multiplying that by the holiday hours worked.

Is holiday pay taxed differently than regular pay?

No, holiday pay is considered supplemental or regular income and is subject to standard federal and state income taxes, as well as FICA (Social Security and Medicare) taxes.