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Paid Time Off: Basic information

Here's some basic information to know about how paid time off policies work. You can set up a variety of policies which include limited PTO, unlimited PTO, and holiday pay policies.

  • PTO policies don't automatically restart at the end of the year. Some state regulations prohibit time off balance resets, so balances will not automatically zero out at year's end unless the admin creates a specific policy to do so, or manually zeroes out the balance themselves.
  • If an employee uses more vacation time than he/she accrued, the PTO balance will go into a negative amount. You can review any employee's balance in the employee's details screen under the time off tracking section.
  • When you dismiss an employee and run a final termination payroll, any remaining paid time off hours will automatically pay out to the employee, but sick hours won't. If an employee is rehired, they will automatically regain any sick balance that they had upon their termination. 
  • In order to apply accrued hours off to a payroll, you must first create a corresponding policy. For example, to apply sick hours taken, you'll need to have already created a sick hours policy before you run the payroll.