Payroll Standard Operating Procedure 6.0: Holidays - Recording Hours Worked

Subject: Holidays - Recording Hours Worked

Source: Financial Management Services

Original Date of Issue: August 2009

Date of Last Revision: June 2018

Rationale: To provide procedures for holiday processing for staff in BW1 and BWP paygroups.

Procedure

Premium holidays for pay purposes: New Year’s Day (January 1st), Martin Luther King Day (third Monday in January), Memorial Day (last Monday in May), Independence Day (July 4th), Labor Day (first Monday in September), Thanksgiving Day (third Thursday in November), Christmas Day (December 25th)

Non-Premium holidays for pay purposes: Campus Holiday (available March 1), Friday After Thanksgiving (third Friday in November)

If employees are away from work on the “official IU observed holiday” and it is a regular scheduled work day, hours should be recorded using the HOL earn code. You cannot use previously accrued holiday hours to cover the current holiday.

Earn Codes:

HOL Holiday Away from work for current holiday (paid; subtracts from reg pay)
HAC Holiday Accrued Add hours to the holiday bank to be used later
HBP Holiday Bonus Additional pay for working on holiday – straight hourly rate
HIP Holiday Incentive Additional pay for working holiday - .50 x hourly rate (IUPUI Only)

 

Examples in this SOP are for full-time biweekly staff employees. You will need to prorate these examples for employees working less than full-time. If you have holiday policy issues, please refer to the UHRS policy webpage.

Biweekly Staff Employees (BW1)

Scheduled Work Day

The holiday occurs on a day the employee is regularly scheduled to work, they plan to be off, and the department requires them to work some or all 8 hours* on the holiday.  They should receive the following compensation:

  • Premium Holiday: 20 hours Maximum (double time and one half)
  • Non-Premium Holiday: 16 hours Maximum (double time)

The following options are available for compensation:

Premium Holiday: Hours worked should be included in regular (RGN) hours and one of the following.

  • Option 1: Accrue 12.00 hours of holiday to be used later: HAC 12.00 hours
  • Option 2: Pay 12.00 hours of HBP (holiday bonus pay)
  • Option 3: Accrue 8.00 hours of holiday to be used later: HAC 8.00 hours AND Pay 4.00 hours of HBP (holiday bonus pay)
  • Option 4: IUPUI ONLY: Accrue 8.00 hours of holiday to be used later; HAC 8.00 hours AND Pay 8.00 hours of HIP (holiday incentive pay)

Non-Premium Holiday: Hours worked should be included in regular (RGN) hours and one of the following:

  • Option 1: Accrue 8.00 hours of holiday to be used later: HAC 8.00 hours (includes IUPUI)
  • Option 2: Pay 8.00 hours of HBP (holiday bonus pay)

*If hours worked are less than 8, the calculation is prorated. If an employee works more than 8 hours, the holiday premium is limited to 8 hours. See examples below.

Example 1: Employee’s regular schedule is M-F, 8-5. Premium holiday occurs on Monday. Employee must come to work for 4 hours and use HOL for the other 4 hours. Record one of the following options for Monday:

  • RGN 4.00 hrs, HOL 4.00 hrs, HAC 6.00 hrs
  • RGN 4.00 hrs, HOL 4.00 hrs, HBP 6.00 hrs
  • RGN 4.00 hrs, HOL 4.00 hrs, HAC 4.00 hrs, HBP 2.00 hrs
  • IUPUI Only: RGN 4.00 hrs, HOL 4.00 hrs, HAC 4.00 hrs, HIP 4.00 hrs

The extra compensation for hours worked on this premium holiday = 4 hrs x 1.5 = 6 hrs

Example 2: Same schedule as in Example 1, except holiday is non-premium. Record one of the following options for Monday:

  • RGN 4.00 hrs, HOL 4.00 hrs, HAC 4.00 hrs (includes IUPUI)
  • RGN 4.00 hrs, HOL 4.00 hrs, HBP 4.00 hrs

The extra compensation for hours worked on this non-premium holiday = 4 hrs x 1 = 4 hrs

Example 3: Employee’s regular schedule is M-Th, 7-6 (10 hrs days). Premium holiday occurs on Monday and employee must come to work for 10 hours. Record one of the following options for Monday:

  • RGN 10.00 hrs, HAC 12.00 hrs
  • RGN 10.00 hrs, HBP 12.00 hrs
  • RGN 10.00 hrs, HAC 8.00 hrs, HBP 4.00 hrs
  • IUPUI Only; RGN 10.00 hrs, HAC 8.00 hrs, HIP 8.00 hrs

The extra compensation for hours worked on any premium holiday is limited to 12.00 hours regardless of the number of hours worked. 8 hrs x 1.5 = 12 hrs

Scheduled Day Off

Both the IU observed and legal holiday occurs on a day the employee is NOT scheduled to work.  The holiday should be accrued (HAC) to use later. If the employee is required to work any hours on a holiday (premium or non/premium) which occurs on their regular scheduled day off, they receive the following compensation for the day:

  •  8 hours holiday accrued (HAC) and
  • CAL/CB3 for any hours worked on the holiday.

Special Note:  Employees working alternate schedules that are required to work on the actual US holiday would follow these procedures on the US holiday instead of the IU observed holiday.

Biweekly Professional Staff Employees (BWP)

When Professional Staff work on a holiday, they receive equivalent time off. Professional Staff employees who are eligible for overtime (BWP) receive time off at a later point equal to the actual time worked on the holiday, up to 8 hours. If the employee works a partial holiday, the portion not worked is considered time off and is charged to HOL hours.

Hours worked should be included in regular (RBP) hours AND accrue 8.00 hours of holiday to be used later: HAC 8.00 hours

 

The calculation is: Hours worked X 1 = HAC


Cross Reference:

Responsible Organization: Financial Management Services, University Human Resources