---
title: Holiday Pay Policies and Worked Holiday
description: Your Holiday Pay Policy is a template feature that automatically pays employees during paid or worked holidays.
---
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# Holiday Pay Policies and Worked Holiday
## Your Holiday Pay Policy is a template feature that automatically pays employees during paid or worked holidays.
**The Worked Holiday option is only applicable to companies using Checkwriters Time Clock. Already have Holiday Pay Policies set up and want to manage them? **
Check out our [Maintaining Your Holiday Records](https://help.checkwriters.com/knowledge/maintaining-your-holiday-records?hsLang=en) article.
[Create Holiday Template](https://help.checkwriters.com/knowledge/how-to-set-up-holiday-pay-policies#create-holiday-template)
[Set Up Time Off Policy](https://help.checkwriters.com/knowledge/how-to-set-up-holiday-pay-policies#set-up-time-off-policy)
[Assign Employees to Holiday Groups](https://help.checkwriters.com/knowledge/how-to-set-up-holiday-pay-policies#assign-employees)
- [Pay Policy](https://help.checkwriters.com/knowledge/how-to-set-up-holiday-pay-policies#pay-policy)
- [Employee Center: Status](https://help.checkwriters.com/knowledge/how-to-set-up-holiday-pay-policies#employee-center-status)
[Time Clock Only: Worked Holiday](https://help.checkwriters.com/knowledge/how-to-set-up-holiday-pay-policies#timeclock-worked-holiday)
Create Holiday Template
1. Navigate to **HR Admin → Time Off Center → Holiday.**
2. Select **Add New** to start a new Holiday Group.
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3. Name your group in the Holiday Group pop-up dialog. Select **Save**. The group will now appear in the Holiday section.
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4. Select **0 Holidays** to open the Holiday Template.
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5. Select **Add New **to add holiday dates to the template.
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6. In the Holiday pop-up dialog, enter your first holiday's Name and Date. You can also choose to check two boxes. Select the **Pay Policy Time Off** checkbox to pay employees for a full day off on this holiday. **[Attendance Worked Holiday](https://help.checkwriters.com/knowledge/how-to-set-up-holiday-pay-policies#timeclock-worked-holiday) **is only applicable if your company uses Checkwriters Time Clock. Select **Save**.
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7. Repeat Step 6 as many times as need to add all of your company's Holidays for the year. Select **Cancel** when all of your holidays have been entered.
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**Note: **Each holiday is processed during the appropriate pay period. For example, if your check date is 07/10/2025 and your pay period is 06/28/2025 - 07/04/2025, the 07/10/2025 check date will contain the holiday hours for July 4th.
If a holiday falls on a weekend but you want to pay holiday hours for the Friday before or the Monday after, assign the holiday date as that Monday or Friday.
### Set Up Time Off Policy
Set up Time Off Pay Policies to assign to your employees.
**Example:** You can set up a Full-Time employee policy that pays out employees 8 hours for each holiday in a holiday group and a Part-Time policy that pays out 4 hours for each holiday in a holiday group.
1. Navigate to **HR Admin → Time Off Center → Pay Policy**.
2. Select **Add New **to start assigning groups.
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3. Enter a **Policy Name** into the appropriate field, e.g. "Full-Time (8 Hours)".
4. In the **Holiday Template** field, select the template that you wish to be associated with this policy. This corresponds to the template(s) created during [Holiday Pay Policy setup](https://help.checkwriters.com/knowledge/how-to-set-up-holiday-pay-policies#set-up-holiday-pay-policy).
5. In the **Earning Code** field, select the code for this policy to be processed under. This will typically be a "Holiday" code.
6. Select a **Begin and End Time** for the holiday hours. The total number of hours should equal the number of hours that will be paid out to your employees. For example, 8:00 AM Begin Time to 4:00 PM End Time is 8 hours of pay.
7. Select **Save**.
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8. Select  **Regenerate** in the row of the Policy you just created. *Do not skip this step**.***
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**Warning: **You MUST regenerate the Pay Policy every time it is adjusted.
### Assign Employees to Holiday Groups
After you create your Time Off Policies, you can assign the policies to your employees. This can be done from the Pay Policy screen or from the Employee Center Status page.
#### Pay Policy
1. Navigate to **HR Admin ****→ Time Off Center → Pay Policy**.
2. Select  **Assignment** in the row of the Policy you wish to assign.
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3. Select the employees you wish to assign to the selected Policy.
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4. Select **Save **to confirm the assignments.
5. Select  **Regenerate** in the row of the Policy you just created. *Do not skip this step*.
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**Warning**: You MUST regenerate the Pay Policy every time it is adjusted.
#### Employee Center: Status
1. Navigate to **HR Admin → Manage Employees → Employee Center → select  Edit for the appropriate employee → Status (tab)**.
2. In the **Pay Policy **field, select the applicable Holiday Pay Policy.
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3. Select **Save** to confirm the assignment.
### Time Clock Only: Worked Holiday
**Note: **Worked Holiday is only available for companies using Time Clock.
Holiday Pay Policies can be used to set up certain dates as ‘Worked Holiday’ for employees. When this box is checked, the **Default Code** field will be enabled.
- Select the code under which this template should be processed. Any hours worked on an "Attendance Worked Holiday" date will automatically be recorded under this code.
**Example:** If you have a Worked Holiday earning code set to pay at 1.5x the employee’s rate, then all hours worked on this date will be paid at the 1.5x rate.
**Note:** If both **Attendance Worked Holiday** and **Pay Policy Time Off** are checked, an employee will receive BOTH the Worked Holiday pay and the Time Off pay if they work on the specified date. If the employee should not receive both pays when working on that date, select only the appropriate box.
If both are checked and an employee works on the holiday, you must cancel the approved holiday request in the **Time Off Calendar**.
**Important: **Please contact Checkwriters Client Support at [support@checkwriters.com](mailto:support@checkwriters.com) if one or both of the following apply to your company:
- You have employees working outside the Eastern Standard Time zone (EST) who *also* work overnight shifts that overlap a Worked Holiday and a standard day.
- You have employees set up with Auto Deductions and Worked Holiday who *also* work overnight shifts.
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