🦃 A Payroll Professional’s Guide to Thanksgiving Week: PTO, Holiday Pay, and Scheduling Explained
Thanksgiving week is one of the busiest and most confusing times of the year for employers. Between bank closures, PTO requests, holiday schedules, and fluctuating hours, it’s easy for payroll to get messy — fast. And nothing sours a holiday more than a missed or delayed paycheck.
The good news? With the right preparation (and the right payroll partner), Thanksgiving week payroll can run smoothly without stress.
This guide breaks down everything employers need to know about holiday pay, PTO, overtime rules, and Thanksgiving-week payroll timing to keep both compliance and employee satisfaction high.
🍂 1. Understanding Thanksgiving Holiday Pay
Thanksgiving Day is a federal holiday, but that doesn’t automatically mean employees must be paid for it.
Is holiday pay required?
In most states, no. Federal law (FLSA) does not require private employers to provide paid holidays.
However, most companies choose to offer it because:
It supports employee morale
It's an expected benefit in many industries
It helps with retention
It makes you competitive in the hiring market
Who gets holiday pay?
This depends on your internal policy. Common approaches include:
All full-time employees
Full-time plus part-time with minimum tenure
Employees scheduled for the day before and after the holiday
Employees not on disciplinary status
Premium Holiday Pay
Some employers offer time-and-a-half or double-time for employees working on Thanksgiving.
Industries like healthcare, hospitality, retail, and public safety rely on this heavily.
🍁 2. PTO Requests Surge — Here’s How to Handle It
Employees often request extra days off around Thanksgiving, especially the Friday after.
This creates two challenges:
✔ Staffing shortages
✔ Payroll calculation complexity
Make PTO clear and consistent
Policies should cover:
How far in advance PTO needs to be requested
How overlapping requests are prioritized
Whether PTO is paid from an accrual bank or unlimited system
Rules for “blackout dates” (common in retail)
Using an HRIS like isolved helps
Self-service PTO requests reduce errors, improve audit trails, and keep communication clean — something Aquila clients already benefit from.
🏦 3. Thanksgiving Week Payroll Cutoffs and Direct Deposit Timing
This is the most overlooked payroll issue of the holiday.
Banks close on Thanksgiving.
Many also operate with limited hours on Friday.
That means if your normal payday falls on:
Thursday → you may need to process early
Friday → your direct deposit cutoff may be earlier than usual
What employers should do:
Check your bank’s holiday processing schedule
Notify employees early if payroll dates change
Submit payroll 1–2 days sooner than usual
Work closely with your payroll provider
Aquila Payroll Services monitors these schedules and alerts clients to cutoff changes so paydays always run on time.
🕒 4. Overtime Rules During Holiday Weeks
Here’s a big myth we hear every year:
“Employees get overtime if they work more than 8 hours or if a holiday falls in the week.”
Not quite.
Federal law (FLSA) only requires overtime when:
An employee works over 40 hours in a workweek
Holiday hours do not count as worked hours
Paid holidays do not contribute to overtime calculations unless your company policy says they do.
Example:
An employee works 32 hours + 8 hours holiday pay
→ Total gross = 40 hours
→ Overtime? No
If your policy is different, consistency is key.
🛎 5. Tips for Keeping Thanksgiving Payroll Smooth
📌 Send out a “Holiday Payroll Reminder” message
Keep employees informed about:
Adjusted pay dates
Early timecard deadlines
PTO approvals
📌 Finalize schedules as early as possible
This reduces last-minute clock corrections or rushed approvals.
📌 Double-check all exempt/non-exempt classifications
Misclassification during holiday weeks is a common source of wage complaints.
📌 Encourage employees to verify direct deposit info
This prevents delays that can't be fixed during bank closures.
📌 Lean on your payroll provider
A good provider will:
Monitor bank holidays
Adjust processing windows
Handle special holiday rules
Provide faster support if issues arise
At Aquila, we handle all of that — with isolved’s automated workflows reducing headaches even further.
🦅 How Aquila Payroll Services Supports You Through Holiday Payroll
Thanksgiving shouldn’t be stressful for employers. With Aquila, you get:
Accurate holiday pay processing
Automatic overtime calculations
Early holiday-week cutoff alerts
PTO tracking and approvals through isolved
Fast support when you need it
Smooth year-end processing right around the corner
We help businesses of all sizes enjoy a holiday season with fewer surprises and more confidence.