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In this video tutorial, Katie from Gusto explains how to set up a PTO (Paid Time Off) plan. PTO refers to paid days off, including sick days, holidays, and vacation days. Businesses can choose to differentiate these days or combine them under the PTO umbrella. The discussion excludes FMLA, voting leave, military leave, jury duty, or other protected types of leave. While there is no federal requirement to offer PTO, local regulations may apply. Offering PTO is recommended to attract and retain quality employees. The tutorial will proceed to detail the steps for establishing a PTO plan.