Most Asked Holiday Pay Questions for 2025
Are employers required to pay holiday pay in 2025?
No, under federal law (FLSA), private employers are not required to provide holiday pay. However, many employers voluntarily offer holiday pay as a benefit. Federal employees receive premium pay for working holidays. Check your employee handbook or contract for your specific company's holiday pay policy.
How do you calculate holiday pay rate in 2025?
Holiday pay = Regular hourly rate × Holiday hours worked × Premium multiplier (if applicable). Common premium rates are 1.5x (time and a half) or 2x (double time). For example: $20/hour × 8 hours × 1.5 = $240 holiday pay. Always verify your employer's specific holiday premium policy.
What are the federal holidays in 2025?
The 2025 federal holidays are: New Year's Day (Jan 1), Martin Luther King Jr. Day (Jan 20), Presidents' Day (Feb 17), Memorial Day (May 26), Juneteenth (June 19), Independence Day (July 4), Labor Day (Sept 1), Columbus Day (Oct 13), Veterans Day (Nov 11), Thanksgiving (Nov 27), and Christmas Day (Dec 25).
Do part-time employees get holiday pay in 2025?
Part-time employees may receive holiday pay if their employer offers it, but it's often prorated based on their regular hours. For example, if a part-timer normally works 4 hours daily, they might receive 4 hours of holiday pay. This varies by company policy - check with your employer for specifics.
Is holiday pay taxed differently in 2025?
No, holiday pay is taxed the same as regular wages - it's subject to federal income tax, Social Security, and Medicare taxes. While the IRS doesn't treat holiday pay differently, the higher amount might temporarily affect your withholding if it pushes you into a different tax bracket for that pay period.
Can you get both holiday pay and overtime pay?
Yes, but they're calculated separately. Holiday premium doesn't count toward the 40-hour overtime threshold under FLSA. If your total weekly hours (including holiday hours) exceed 40, you get overtime pay (1.5x) for hours over 40, plus any holiday premium your employer offers for working the holiday.
Do you get paid if a holiday falls on your day off?
This depends entirely on your employer's policy. Some employers provide 'paid holiday off' benefits where you receive regular pay even if you don't work. Others only pay if you actually work the holiday. Private employers aren't required to provide either - it's a voluntary benefit.
Where can I find a free holiday pay calculator for 2025?
Free holiday pay calculators are available from PaycheckCity, ADP, and various HR websites. Look for calculators that include 2025 federal holidays and allow you to input your specific premium rates. Many payroll companies also offer free calculators on their websites with current year data.