Here is what I mean.  Our company pays on the 15 and last day of the month. Because of this, our cut off day is 4 days prior to the pay day. An issue came up with this last payroll because the 15 was a holiday and we paid on the 12. The issue is that an employee is saying we should have paid the holiday however I have never worked for a company that pays for a holiday before it happens. I do the payroll and at previous companies I have done the payroll they also paid the holiday on the payroll cycle following the holiday.  Am I wrong or is this the correct practice to pay in advance of the holiday? To me it feels like we are prepaying hours.