Does a Time Card Need to Show Holiday Pay Separately?
October 23, 2026
Holiday pay is commonly tracked as a distinct line item on a time card, separate from regular worked hours, since it represents paid time that wasn't actually worked — bundling it into the same total as worked hours makes the record less clear and can complicate overtime calculations.
Skip the math and get your answer instantly:
Open the Time Card Calculator →Why the Separation Matters for Overtime
Since the FLSA overtime threshold (40 hours in a workweek) is generally based on hours actually worked, not paid time off, holiday pay typically shouldn't count toward that 40-hour threshold the way actual worked hours do — keeping it as a separate line item prevents it from inadvertently being included in an overtime calculation.
What a Clear Time Card Shows
A well-structured time card separates regular worked hours, overtime hours, and any paid-but-not-worked time (holiday, PTO, sick leave) into distinct categories — this makes both payroll processing and any later audit of the record significantly more straightforward.
Frequently Asked Questions
Should holiday pay be shown separately on a time card?
Yes — commonly tracked as its own line item, separate from regular worked hours, for clarity and accurate overtime calculation.
Does holiday pay count toward the 40-hour overtime threshold?
Generally no — the FLSA overtime threshold is based on hours actually worked, not paid time off like holiday pay.
What categories should a clear time card separate?
Regular worked hours, overtime hours, and paid-but-not-worked time (holiday, PTO, sick leave) as distinct line items.
Why does this separation help with audits?
It makes it clear exactly what was worked versus paid without work, simplifying verification of both pay accuracy and overtime calculations.