Setup > Company > Company Holidays lists the days your company is closed. When leave is requested, weekends and these holidays are not counted as working days.

• Date and Holiday name – one row per day. Click Add a holiday for a new row and Save Changes to save.
• Active – uncheck to stop using a holiday; holidays are made inactive rather than deleted.

The holiday list affects how many working days a leave request counts and which days its time entries are created for. It does not (yet) pay anyone for the holiday; enter holiday pay as a time entry with the Holiday pay code or a manual line on a pay run.