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:
December, 2016
PSOP NO: 6.0
RATIONALE:

To provide procedures for holiday processing for staff in BW1 and BWP Paygroups

PSOP:

 

 

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 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)

 

Assumptions:

  1. Examples in document are for full-time biweekly staff employees (You need to prorate for employees working less than full-time).
  2. If you have holiday policy issues, please refer to the UHRS policy manual.

 

Biweekly Staff Employees (BW1):

 

Scheduled Work Day:

If an employee works 8 hours* on the holiday and it is their regular 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

Or

  • Option 2: Pay 12.00 hours of HBP (holiday bonus pay)

Or

  • 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)

Or

  • 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)

Or

  • 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 and employee must come to work for 4 hours and used 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 above 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-T, 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.  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 regular scheduled day off, they receive the following compensation for the day:

 

  • 8 hrs 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.

 

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:

See the following policies,
Payroll PSOP 1.0, Fiscal Officer's Procedures to Ensure Compliant, Accurate and Timely Payroll Processing: PSOP1_Fiscal_officer


Payroll Administration Policy IV-70, Supplemental Payments for Services Provided Outside the Normal Scope of Employment: FIN-PAY-IV-70
RESPONSIBLE
ORGANIZATION:
Financial Management Services