The holiday season is also payout season. Millions of US workers receive some combination of a year-end bonus, a cash gift, and a check for unused vacation or PTO days — but most have no idea what the total should add up to before it hits their bank account. This holiday pay calculator rolls those three pieces into one gross number so you can budget for December without guessing.
Slide in your annual salary, your bonus percentage, the cash gift your employer gives out, and how many unused PTO days you are cashing out. Every line updates instantly, and the result card shows each component separately so you can see exactly where the money comes from.
How to Use
- Enter your Annual Salary — your gross yearly base pay, before 401(k), taxes, or premiums. This is the number on your offer letter or W-2 box 1.
- Set your Holiday Bonus as a percentage of that salary. If you do not know your company's formula, 3%–10% is the typical corporate range; hourly workers often get a flat dollar amount instead.
- Add a Flat Cash Gift if your employer hands out a discretionary bonus — a $500 December check, a "holiday ham" stipend converted to cash, or a service-anniversary payout. Leave it at 0 if none applies.
- Type your Unused Holiday / PTO Days — the paid time off or paid holiday days your employer agrees to cash out at year-end. Not every state or company pays these out, so check your employee handbook.
- Adjust Working Days Per Year only if your contract uses an unusual count. The default 260 (52 weeks × 5 weekdays) is the standard US payroll convention; some firms use 240 or 250.
The result card shows your daily pay rate, the calculated bonus, the PTO payout, the flat gift, and the total gross holiday pay. Remember this is the gross figure — federal supplemental withholding (usually a flat 22%), FICA, and state taxes will reduce what you actually receive.
How Holiday Pay Is Calculated
Holiday pay in the US is not required by federal law; the Department of Labor treats paid holidays as a benefit set by employer policy. That said, almost every payout breaks down into the same three lines:
- Holiday bonus — usually a percentage of annual salary, e.g. 5% of $80,000 = $4,000.
- PTO / unused holiday payout — your daily rate multiplied by the number of unused days. Daily rate = annual salary ÷ working days per year.
- Flat cash gift — a discretionary dollar amount, common in retail, hospitality, and small businesses.
Total holiday pay = (annual salary × bonus %) + (unused days × annual salary ÷ working days) + flat gift.
Worked example on an $80,000 salary with a 5% bonus and 10 unused PTO days at 260 working days per year: the daily rate is $80,000 ÷ 260 = $307.69, the bonus is $80,000 × 5% = $4,000, the PTO payout is 10 × $307.69 = $3,076.92, and the total gross holiday pay is $7,076.92 — roughly $7,077 before taxes.
Examples
Example 1 — The standard corporate payout. An employee earning $80,000 gets a 5% year-end bonus, no flat gift, and 10 unused PTO days cashed out. The daily rate is $307.69, the bonus is $4,000, the PTO payout is $3,076.92, and the total gross holiday pay comes to $7,076.92. After the standard 22% federal supplemental withholding plus FICA, the check lands closer to $5,400–$5,600.
Example 2 — Retail worker with a flat gift. A store associate earning $42,000 gets a 0% percentage bonus but a $300 holiday cash gift and 5 unused PTO days. Daily rate is $161.54, PTO payout is $807.69, and the total gross holiday pay is $1,107.69 — small, but a real December lift.
Example 3 — Executive at scale. A manager earning $200,000 receives a 10% bonus, a $2,000 flat service award, and 15 unused PTO days. The bonus is $20,000, the daily rate is $769.23, the PTO payout is $11,538.46, and the total gross holiday pay is $33,538.46. Because supplemental pay above $1 million in a calendar year is withheld at 37% instead of 22%, higher earners should plan for a heavier tax bite.
FAQ
How is holiday pay calculated?
Holiday pay is the sum of three components: a percentage-of-salary bonus (annual salary × bonus %), a PTO payout (unused days × annual salary ÷ working days per year), and any flat cash gift. Add them together for the gross total, then subtract federal supplemental withholding (usually 22%), FICA 7.65%, and state tax to estimate your net check.
Are employers required to pay holiday pay in the US?
No. The Fair Labor Standards Act (FLSA) does not require payment for time not worked, including holidays. Holiday pay, year-end bonuses, and PTO payouts are governed by your offer letter, employee handbook, or union contract. Some states (such as California) require employers to pay out accrued unused PTO when employment ends, even if they do not pay it mid-year.
Is a holiday bonus the same as PTO payout?
No. A holiday bonus is discretionary or formula-based extra pay — typically a percentage of salary or a flat amount. A PTO payout converts unused accrued vacation or sick leave into cash at your daily rate. This calculator adds both together because they usually arrive in the same December paycheck, but they are taxed and negotiated differently.
What is a typical holiday bonus percentage?
For salaried corporate employees, year-end bonuses usually run 3%–10% of annual salary, with finance, tech, and sales roles often higher and tied to performance. Hourly and frontline workers more commonly receive a flat cash gift ($100–$1,000) or a small number of extra paid days, rather than a percentage.
How much will I actually take home from my holiday pay?
The gross number this calculator shows is before taxes. The IRS treats bonuses and PTO payouts as supplemental wages, withheld at a flat 22% federal rate (37% on the portion over $1 million in the year), plus 7.65% FICA and your state's income tax. A $7,077 gross holiday check typically nets around $5,400–$5,700 depending on your state.
Do I get paid extra for working on a holiday?
Only if your employer's policy or union contract says so. Unlike overtime, holiday double-time or time-and-a-half is not federally required in the US. Many companies voluntarily pay 1.5× or 2× for shifts worked on Thanksgiving, Christmas, or New Year's Day — check your handbook. This calculator does not model worked-holiday premium pay; it estimates payouts you receive whether or not you work the day itself.
Disclaimer
This holiday pay calculator is provided for informational purposes only and does not constitute financial, tax, payroll, or legal advice. Figures are gross estimates based on the inputs you enter; actual bonus formulas, PTO payout policies, supplemental wage withholding rates, and state-specific rules vary widely by employer and location. Always confirm your exact payout and withholding with your HR or payroll department, and consult a qualified tax professional for your personal return.