How a PEO Can Help You Administer PTO

Sometimes, employees of your small- to mid-sized business miss work. Sometimes, they might be sick. Sometimes they just have an attack of life — there are family obligations and field trips with children or just a plain ol’ plumbing emergency.PEMCO-PTO.jpg

In recent years, a popular option for managing employee attendance has been the creation of paid time off (PTO) policies. Combining sick time, personal time, and vacation time, PTO is a pool of days that the employee can use to take off from work as needed. This gives employees flexibility and helps employers better manage workplace attendance.

Although, offering PTO as an employee benefit can add another complication to payroll administration, partnering with a professional employer organization (PEO) can relieve your managers of the administrative burden of tracking its use.

Creating PTO policies

To get the most out of PTO, your company will need to create policies governing its use. A good rule of thumb is to require that employees request to use of it at least two days prior except in circumstances of sickness. There are also other considerations when developing the policies, according to the Houston Chronicle:

Although labor and employment laws don't mandate that employers provide PTO, many state laws regulate how employers' policies must handle certain PTO matters, such as payout at the end of the year, use-or-lose policies and compensation for accrued PTO when an employee is terminated or resigns.

Managing PTO

In addition to the policies, there is the burden of actually crunching the numbers. How often does an employee accrue PTO? How do you keep track of it? The administrative oversight of payroll is complicated enough without throwing PTO into the mix as well.

That’s where partnering with Progressive Employer Management Company (PEMCO) can help. PEMCO can implement an online payroll system that protects your payroll from human error and miscalculations from your payroll. The payroll specialists at PEMCO can keep your payroll running smoothly. Contact us today for more information.