Household Employment Blog | Nanny Tax Information

Holiday Pay: How to calculate for a nanny or senior caregiver

Written by Mary Crowe, FPC | 9/2/14 10:41 PM

Monday, September 1 is Labor Day in the U.S. - a Federal holiday that many nannies and caregivers receive as a paid holiday. Families often struggle with how to calculate the employee's paycheck, especially overtime pay,  when a paid holiday is in the pay period.

HWS's Mary Crowe summarizes a few different scenarios of how to handle a holiday pay.  

Assumptions are the employee is paid weekly on Friday and the week runs from Saturday to Friday. The employee normally works 40 hours a week.

  1. Paid Holiday, employee did not work. In this case, nothing is different.  Although she worked 32 hours, the employee would be paid for 40. A pay stub would reflect 32 hours of regular pay and 8 hours of holiday pay.
  2. Paid Holiday, employee did not work; however she worked 5 hours on Saturday August 30th, while you had a date night.  In this case, she would get paid for 45 hours at her regular hourly pay rate. Why no Over Time?  You have to have 40 working hours to get paid over time. In this example, there are 37 regular hours and 8 Holiday hours for a total of 45 total regular rate hours.
  3. Paid Holiday, employee did not work however she worked 5 hours on Saturday September 6th. In this case, she would get paid 32 regular hours and 8 holiday hours for a total of 40 hours.  The work performed on the 6th is in the next pay period.
  4. Paid Holiday, employee works the day of the holiday.  In this case, the employee would be paid for the hours worked on the holiday and the holiday (so essentially she will be paid double time). This would be reflected as 40 hours at her regular hourly rate and 8 hours of holiday pay on a pay stub.

Questions? Give us a call at 800.626.4829 or request a free telephone consultation!