Determine the employee’s regular hourly rate or daily rate
Identify the holiday type and whether it is paid or unpaid
Check the applicable labor law, company policy, or employment contract
Confirm whether the employee qualifies for holiday pay
For hourly employees, multiply regular hours by the holiday pay rate
For salaried employees, divide annual salary by the number of pay periods to get the regular pay amount
Apply any premium rate required for working on a holiday
Add any eligible overtime, shift differential, or bonuses if required by policy or law
Subtract any unpaid time off or ineligible hours if applicable
Verify the final amount against payroll rules before payment