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In this video, Katie from Gusto discusses how to set up a Paid Time Off (PTO) plan. PTO refers to paid days away from work, including sick days, holidays, and vacation days. It’s highlighted that this tutorial will not cover other types of leave, such as FMLA or military leave, focusing solely on PTO. While federal law does not require employers to offer PTO, certain local regulations may mandate it. Offering PTO is recommended to attract and retain quality employees. The video will provide further guidance on how to establish an effective PTO plan, beginning with the first step in the process.