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In this tutorial, Katie from Gusto discusses the establishment of a Paid Time Off (PTO) plan, explaining that PTO encompasses sick days, holidays, vacation days, and other paid absences, while noting that it doesn't include FMLA, military leave, or other protected times off. She emphasizes that federally, there is no requirement to offer PTO, but local laws may impose such mandates. Offering PTO is recommended for attracting and retaining a strong workforce. The video aims to guide viewers through the steps for setting up a PTO plan, beginning with initial considerations related to mandatory offerings and the benefits of providing PTO to employees.