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: August 2017
Rationale: To provide procedures for holiday processing for staff in BW1 and BWP Paygroups.
Premium holidays for pay purposes: New Year’s Day (January 1st), 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), Martin Luther King Day (third Monday in January), Friday After Thanksgiving (third Friday in November).
If employees are away from work on the official IU observed holiday, and the holiday falls on a regularly-scheduled work day, hours should be recorded using the HOL earn code. Do not use previously accrued holiday hours to cover the current holiday.
|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.
Biweekly Staff Employees (BW1)
Scheduled Work Day
If employees work 8 hours* on the holiday and it is their regularly-scheduled work day, 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)
*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.
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)
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
An employee whose regular day off is both the observed and the legal holiday will receive (8) hours off with pay at a mutually agreeable date. In this case, the holiday should be accrued with the HAC code.
If an employee works any hours on a holiday (premium or non/premium) which occurs on their regularly-scheduled day off, they receive the following compensation for the day:
8 hours holiday accrued (HAC), and OVT for any hours worked on the holiday.
- If the employee had time off during the week on earn codes that do not count towards the overtime calculation, these extra hours may show up as NEP/NEC in TIME. You will need to wait until after the hours are loaded to the voucher and change them to OVT.
- 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 the employee’s regular (RBP) hours ANDthe employee should accrue 8.00 hours of holiday (HAC) to be used later. The calculation is: Hours worked X 1 = HAC hours accrued.
- Fiscal Officer's Procedures to Ensure Compliant, Accurate, and Timely Payroll Processing, PSOP 1.0
- Holidays, HR-05-30
Responsible Organization: Financial Management Services