2025 Pub. 7 Issue 2

1. Start by Reviewing the Latest Employee Trends Here’s why you should consider revisiting your organization’s approach to PTO and start encouraging loud vacationing: • 85% of employees believe that vacations boost their happiness.1 • 46% don’t use all their allotted PTO in a year.2 • 47% feel guilty about taking a vacation.3 • 68% say they work during vacation.3 2. Create a Plan To Revamp Your PTO Program There’s no one-size-fits-all PTO plan, and your policies will depend on the unique needs of your business. However, as you consider updating and modernizing your program, you can start by asking yourself the following questions: • How do your PTO policies stack up against offerings from your competitors and other businesses in your area? • Are you providing enough time off each year for employees to disconnect as needed? • Do you have an adequate system for tracking and approving PTO use? • Do you have clear procedures for handling requests at popular times or during your busy season? • Have you asked employees for feedback about their experience requesting or using PTO? • Have you identified any patterns of underuse organization-wide or in particular departments? • Do you have a legally compliant cap on accrual of paid time off or a legally compliant PTO policy? • Do your policies comply with all applicable federal, state and local leave laws? 3. Consider Different Types of PTO Models To embrace loud vacationing, you may need to think outside the box. But first, let’s talk about unlimited PTO models, which have become popular in recent years. Under these plans, employees don’t have a set number of PTO days, accruals or caps. Instead, they request paid time off as needed or desired, and managers use their discretion to approve or deny such requests. These policies place no cap on the amount of time an employee can take off. 11 UTAH AUTO DEALER

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