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In this video, Katie from Gusto discusses setting up a Paid Time Off (PTO) plan. PTO encompasses sick days, holidays, and vacation days that employees are compensated for while not at work. Unlike FMLA, military leave, or other protected time off, this tutorial focuses solely on sick, holiday, and vacation time. While federal law does not require offering PTO, some local regulations may mandate it. Offering PTO is recommended to attract and retain a strong workforce. The video will outline steps on how to establish an effective PTO plan.