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In this video, Katie from Gusto discusses setting up a Paid Time Off (PTO) plan. PTO encompasses paid sick days, holidays, and vacation days, though some businesses may treat these differently. The video does not cover FMLA, military leave, or other protected time off, focusing solely on sick, holiday, and vacation time. While there's no federal obligation to offer PTO, local regulations may require it, so it's important to verify your area's rules. Offering PTO is recommended for attracting and retaining employees. The video aims to guide viewers through the initial steps of establishing a PTO plan.