Federal Holidays and Overtime Pay
A holiday is a day set apart by law or custom where normal everyday activities, particularly work or business including school are stopped or reduced. In general, holidays are meant to let people to commemorate or celebrate an occasion or even tradition of religious or cultural importance. Holiday is generally a day when people go out for enjoyment and relaxation. Normally, this day is set apart when the New Year’s celebrations begin. Some cultures observe and celebrate different religions and festivals in their holidays.
Holidays are not only observed by the New Year’s parties. They are also observed throughout the year in many other countries. It is important that you understand the nature and characteristics of a holiday before you make a decision about it. Many people, who wish to go on a holiday, tend to think about the expenses incurred and the time of the year during which they would like to go. They fail to consider the impact and significance of a holiday to their life and how it may affect their health, future, and achievements.
The Federal government has formulated certain rules and regulations to provide holiday pay and other benefits to employees who take their holidays off. These rules and regulations have been developed after careful study and deliberation. One of the most significant aspects of holiday pay is the absence of discrimination based on gender, religion, union membership or any other similar criterion. All employees of the U.S. federal government are entitled to all holidays and all federal holidays, whether paid or unpaid. There are also certain official holidays, which are provided to all government employees regardless of their designation.
Overhead benefits, such as holiday pay, vacation pay, and overtime pay, do not apply to workers covered by the Federal Whistleblower Protection Act or the Office of Special Counsel. Overtime pay, or extra ordinary expense, is not taxable. Therefore, employees who earn holiday pay, vacation pay, or overtime pay, are not taxable until the amount actually receives. The same applies for individuals who receive disability compensation.
A few days after a federal holiday, the normal pay schedule will resume, to cover normal holiday pay and necessary overtime pay for that period. This means that employees will receive the same regular rate for each holiday they are employed in. The normal rate will be recalculated to include the holidays missed, at which point it becomes taxable income. The total holiday paid will then be added to the next year’s normal pay.
The only way to reduce the taxable income resulting from federal holidays is to avoid taking them in the first place. Employees should not wait until they reach the end of the year to take their annual holidays, as they will then be subject to both federal holiday pay and overtime pay. If an employee takes an annual holiday, but chooses not to use it, the employer is not required to compensate him or her for this decision. However, if the employee does not return to work for the following year, and chooses to continue to have his or her holiday pay garnished, the employer will be required to return the entire amount.