Helping Small Business Owners Manage Paid Time Off
Many small business owners are reluctant to provide paid time off (PTO) for their employees due to the cost and the difficulties of keeping track. However, PTO is a benefit that may well pay for itself by reducing the costs associated with high turnover rates and the inability to attract good employees.
PTO gives valuable employees the opportunity to rest and unwind, which improves their overall health. And good health improves productivity, quality and safety!
With these tips and tools, you can understand and manage PTO without headaches and hassle. And you can stay compliant with government regulations.
What is PTO?
PTO is any compensation provided for hours NOT worked. Vacation, holiday pay, and sick time are the most common examples.
Is PTO Required?
While family medical leave is currently required for businesses with 50 or more employees, most small business owners are not required to offer PTO by the federal government. The only state that currently requires PTO is Calilfornia.
Note: If you provide services to the government under contract, you will want to review their policies and make sure you are in compliance.
What Rules Apply to Businesses Who Provide PTO
If you do provide PTO, your policies should be in compliance with any state regulations. (For example, PTO payout laws vary from state to state.) Your policies should be clearly stated in your employee handbook. And all employees should be treated according to policy. If you are an Otis Wood Agency client, you have free access to ThinkHR, where you can find state specific regulations and a free employee handbook builder.
Here's something fun. Learn how well you know PTO with this quiz!
How Do I Track PTO?
Tracking PTO can be difficult if you are using timesheets and tallying by hand. And if you are not tracking it properly, you could be losing money or find yourself in a difficult conversation with an angry employee.
We recommend using BerniePortal's PTO tracking system. With this affordable tool, you can streamline time off requests and approvals, track accruals and provide access to employees. You can see how it works here.
Get a Free Consultation
If you are struggling with employee retention and need help putting together an employee benefits package, including PTO, call Otis Wood Agency today. A qualified consultant will help you design an affordable benefits program that fits your business.