Md. Code Regs. 09.32.02.12 - Holiday Pay or Vacation Pay

A. Definition. "Holiday pay" or "vacation pay" means the gross amount of holiday pay or vacation pay.
B. Holiday pay or vacation pay is attributable to:
(1) The week or weeks designated by the employer or the collective bargaining agreement as the holidays or vacation days; or
(2) If not as designated in §B(1) of this regulation, the weeks during which it is paid.
C. Deductible Holiday Pay or Vacation Pay.
(1) Holiday pay or vacation pay shall be deducted from benefits if the claimant is notified of a definite return-to-work date on or before the date of layoff or separation. The reason for separation is not a determining factor.
(2) If the employer rescinds or modifies the return-to-work date originally given the claimant and extends the period of unemployment after the claimant files the initial or reopened claim, vacation pay or holiday pay shall be deducted only for the originally specified vacation or holiday period and may not be deducted for any period of additional unemployment resulting from the rescission or modification.
D. Nondeductible Holiday Pay or Vacation Pay. Holiday pay or vacation pay may not be deducted from unemployment insurance benefits if the holiday pay or vacation pay is paid:
(1) At the time of or after the claimant is separated from employment, and the claimant is separated from employment for an indefinite period or is permanently separated from employment; or
(2) By the employer or payable for any period which is outside of the terms of an employment agreement that specifies scheduled vacation or holiday periods or employee discretion in scheduling vacation or holiday periods.
E. Partial Earnings. Holiday pay or vacation pay that is less than the claimant's weekly benefit amount shall be deducted as partial earnings as set forth in Regulation .10E of this chapter.
F. Holiday Pay and Vacation Pay Reportable and Taxable. Holiday pay or vacation pay is reportable and taxable for the purpose of the employer's contribution obligations under the Unemployment Insurance Law.

Notes

Md. Code Regs. 09.32.02.12
Regulations .12, Reporting and Registration by Claimant for Benefits, repealed and new Regulations .12, Claims for Benefits, adopted effective October 29, 1990 (17:21 Md. R. 2531)

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