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# Paid Time Off Accrual

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What is paid time off accrual? Why is it needed and how is it calculated?

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Paid Time Off or PTO is a bank of hours from which employees can draw. Employers credit additional hours to their employees "banks", usually every pay period. Most US employers offer their workers 10 paid holidays, 2 weeks' vacation, two personal days, and 8 sick leave days per year. Under a PTO plan, the employees would be credited with 30 days paid time off instead (10+10+2+8).

On a bi-weekly pay schedule (26 pay periods per year) employees would accrue an additional 1.3 days of PTO every two weeks. Where a semi-monthly pay schedule is used (pay days on the 1st and 15th of each month) employees accrue 1.25 days PTO on each of the 24 ...

#### Solution Summary

This solution defines the concept of paid time off accrual and how it is calculated.

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