Making Your PTO Package Bulletproof

If you’re in the process of drafting your first PTO document as part of your employee benefits package, congratulations! Hiring employees is an exciting milestone that heralds a future of growth and success. To make your PTO plan airtight, remember to cover certain considerations. The financial services experts at Windstone Financial present some tips to make your PTO package bulletproof.

Crossing the T's

For a quick checklist, be sure your document addresses the following:

  • Eligibility criteria
  • Accrual and carryover of PTO
  • PTO payout
  • Leave types
  • Work hour requirements
  • Procedures for requesting time off
  • Consequences for infractions

Staying Legal

While there are currently no federal laws in place to require paid time off, the practice has become more widespread in recent years. In fact, according to CNBC, the U.S. is the only developed nation in the world without federally-mandated PTO. Some states do have legislation on eligibility and availability of paid leave, so be sure to research the laws in your area.

Apart from state PTO laws, it’s important to be in full compliance with legal leave of absence laws like the Family and Medical Leave Act, Title VII, and the Americans with Disabilities Act. Absences that are protected might not need to be paid, but they must be permitted and employees should not be penalized or reprimanded for them.

Doing Right By Your Employees

Especially among younger generations, Harvard Business Review notes that PTO is an increasingly important factor in job satisfaction and can help a business find and retain top talent. The psychology of reciprocity suggests that if workers feel cared for and trusted by their employers, they are more apt to care for and trust their employers in return. This can create a healthy cycle and build a positive culture within your company. If you’re concerned about employees abusing time off, include clear instructions for how requests will be managed and what measures will be taken if rules are broken.

Also look up quality business contractors who might fit your needs when it comes to experience, skills, budget, and schedule. Online job platforms often include reviews that can help determine a good fit. The marketing consultant hourly rate generally averages $32.43 an hour, and the investment may save you enormous amounts of time and money by ensuring a legally- bulletproof policy.

Whether you have full-time or salaried employees, or have contractors complementing your workforce, you’ll want to make sure your payroll is organized, on time, straightforward, and efficient. Call on Windstone Financial so you’ll never have to worry about missing payday.

Getting Technical

The formatting of your document is as critical as its content. Here are some design best practices you should double-check before you send out your PTO policy.

  • Use a professional font. Popular serif fonts include Georgia and Garamond, but sans serif fonts like Helvetica and Lucida Sans are also great choices. Either way, choose clear and easily deciphered fonts. Whatever you do, don’t use Comic Sans.
  • Use a template. No need to reinvent the wheel. Conduct a quick online search and find existing templates that you can customize to your needs.
  • Compress large files. If your employee onboarding paperwork contains images, the file might be too large for an email. Use a dependable PDF compressor tool to reduce the PDF’s size while preserving the original look and structure of the document. Advancements in technology have led to compression options that can retain the image quality of the original.
  • You may want to prepare an infographic to answer any frequently asked questions about your PTO policy. You can start by using an infographic template to achieve a basic layout. Then you can customize it with text, images, colors and backgrounds.

Paperwork isn’t the most exciting part of hiring new employees, but it’s an important piece to get right. Follow these tips and formulate a PTO plan that will serve your company your employees effectively.

If you need help with your PTO policy, click the button below to speak with a CPA today!

Share the Knowledge!
Share on facebook
Share on twitter
Share on linkedin
Windstone Financial

Windstone Financial

We are a dedicated team of CPAs that work exclusively with small business owners to lower their taxes and grow their businesses. We will provide relief to all of your accounting headaches.

stock exchange, arrow, downturn-7204585.jpg
E-Commerce Tips

E-Commerce Trends September 2022

Do you know what social media platform your target audience is on? We analyzed the demographics of all the major social media platforms so you can start placing more effective ads.

Read More »
doctor, research, chemical-3822863.jpg
Tax Tips

Understanding the R&D Tax Credit

Has your company been developing new products or improving existing ones? If so, you may qualify for the R&D tax credit! We will make it easy to understand how the credit works and how you can use it to lower your taxes.

Read More »