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In this video, Katie from Gusto discusses setting up a Paid Time Off (PTO) plan, which includes sick days, holidays, and vacation days. She emphasizes that PTO should not be confused with other types of leave like FMLA or military leave. While federally there is no requirement to offer PTO, local regulations may impose certain obligations, so it's crucial to check these requirements. Offering PTO is beneficial for attracting and retaining talent. The tutorial will then guide viewers on how to effectively structure their PTO plan, starting with preliminary questions regarding the necessity and desirability of offering PTO.