12 Answers to Common Paid Time Off Questions

12 Answers to Common Paid Time Off Questions

 

Paid Time Off Questions

When it comes to workers and the amount of time they are allowed off, there are plenty of different questions that come up. However, what are the actual answers to these questions? Here are 12 of the most common questions an employer is going to hear about paid time off and the answers to each question.

1. Average Number of Paid Holidays

Every place of business is going to have different paid holiday numbers. However, the average inside of the United States is between 9 and 10. Some do provide as high as 15 and most also have at least one floating holiday.

2. Are Employees Required to Provide PTO

There is no federal requirement to offer up paid time off, although there are many holidays that most employers observe and pay their workers. In general though, it is desirable to offer PTO in order to attract the top workers around.

3. PTO Plans vs. Vacation and Sick Time

The PTO plan lumps everything into a single offering instead of separating it. This way, individuals who are not sick as often can use the days for vacation time. It also becomes easier to forecast vacation days instead of random sick time.

 

Paid Holidays

4. Credit Paid Holidays That Occur Over Vacation?

In order words, if someone is taking vacation during a holiday (such as Christmas) should you credit it? While there is no rule, it is good practice to credit it. Otherwise, an individual is just missing out on one of the PTO days, which isn’t a good look for the company.

5. What Should Be Done About Workers Who Take Off Unscheduled Days Before/After Holidays?

This is in reference to someone taking off the day before Labor Day, 4th of July or another typically paid holiday without any warning. This is something that happens a lot but can cause problems within the office. That is why it is necessary to consider discipline measures for individuals. It is better to have employees schedule this.

6. What is the Most Common Number of PTO Days Given?

The standard number of vacation days is 10 after a full year of work. This goes up to 15 after five ears, 18 days after 10 years and 20 days after 15 years of service. Generally, the highest number of PTO days is 20 to 25. Some companies base this off of either the first of the year or the anniversary of when someone is hired.

7. What About Unlimited Vacation Time?

This is becoming more and more popular with new companies. This is something that is possible with salaried workers, although when it comes to hourly workers, it is a rather difficult thing to administer. Unlimited vacation does make it easier to avoid tracking time on the job, plus it is a very attractive aspect to offer when bringing in the very best workers.

 

Creating a PTO Donation Program

8. What to Consider When Creating PTO Donation Program?

There are a few different ideas someone needs to follow through with and consider when creating a PTO donation program. This is where some employees donate time to other employees in order to help cover medical time off, family problems or other unavoidable issues. Some points to think about is who is eligible for the donations and how to figure out administrative details.

9. What Should New Hires Receive?

How much paid time off should new employees receive? This is often a tricky question as it needs to be enough to entice someone to apply for the job, but longer tenured workers should receive more. Generally, it ranges between five and 10 days. Some companies bulk sick days into this offering and it comes out to 10 to 15. There is also an accrual program that can be included, where these days continue to accumulate.

10. Carry Over Days

This comes down to what you think is right. Some employers offer a use it or lose it policy, so days are unable to carry over. The downside to this is if someone doesn’t use their time, it might result in a large number of employees not coming into work for the final several weeks of the year. Allowing carry over days may prove beneficial, but there is no rule behind it.

 

Carry Over Days

11. Cash Out?

Perhaps instead of allowing days to carry over, you can think about cashing in unused time. Maybe you pay out 50 to 70 percent of the allotted amount for the PTO. Many employees might actually take this, especially if they need the extra money. It also keeps employees on the job and can reduce productivity loses.

12. Pay Vacation Days When Firing?

If someone is fired, do they receive compensation for the days they have left? This is something that varies from state to state. Check your state laws to see if it is required.

 

 

Article provided by Neches FCU, with locations in Port Neches, Nederland, Beaumont, Lumberton and Bridge City.

Neches FCU is one of the most trusted Texas Credit Unions. It has 9 convenient service locations, with a superior team of professionals ready to service their 45,000+ members. Daily, their core mission of “Ultimate Member Satisfaction” becomes the sole focus for every employee.

Some Valuable Tips on Using Disposed Assets as Tax Benefits

Using Disposed Assets as Tax Benefits

 

Tax benefits

Tax benefits

Small businesses seek to save as much money as possible. This is true in everyday operations, and when filing taxes. Finding the deductions for business expenses and improvements can sometimes be confusing, but there are a number of deductions that can be claimed to get money back in the pocket of the business owner.

Tangible Property Regulations

 

Tangible Property Regulations

Tangible Property Regulations

 

What some may not know, or be aware of but not understand its implications for their business is the tangible property regulations. Newer editions of the Revenue Procedures allow for greater flexibility and deductions through the tangible property regulations. Procedures for claims and deductions have been greatly simplified, as well as those companies who qualify to use them.

Companies who do not have more than 10 million in revenue or assets qualify under the new regulations. This allows for even more companies to be considered small scale and utilize easier filing formats. Paperwork has been greatly reduced, so the number of deductions that can be claimed can be done so in a bulk filing fashion.

What Can Be Claimed

 

Regulations

Regulations

The new regulations allow businesses to claims such things as:

–    Buildings
–    Equipment
–    Depreciation
–    Disposable assets

What this means is that the improvements that are made to buildings used for storage of stack or in the daily operations of the business can claimed, as well as any depreciation that happens as the buildings age.

In more general terms this means that no longer will businesses be left footing the entire bill for the cost of upkeep and improvements. They now have an avenue where a part or all of these costs can be written off, allowing the business to grow and increases in its market presence.

Single, Multiple, and Back Claims

Another way in which the regulations have improved to aid businesses with their taxes filings is that they are now allowed to make back claims. In other word, if improvements and costs have been incurred prior to the induction of the law, they may claim them now. This allows for a window of depreciation as well.

Many may also think that these regulations require the business to make multiple claims in order to garner the benefits. This is not true. If a singular item or device has been updated, repaired or replaced, the business can also claim the singular item. While multiple items (like replacing multiple windows or doors) will catch greater tax deductions, they are not required to file for the benefits under the new regulations.

Complying With the New Regulations

 

Comply with the Laws

Comply with the Laws

Compliance with the regulations is required under the law. This benefits the business in that deductions can be significantly more than they have been in the past. However, the new regulations can be complex and sometimes confusing. For this reason no business should attempt filing without the aid of a professional.

Navigating the complex law will take expertise and knowledge of the laws and how to successfully file for deductions. A tax professional can aid in this matter as they will have this expertise and knowledge to get the most deductions to save the business the most on their taxes.

Keep Records

The key in accessing these deductions is to keep records. They will be a necessary facet to garner the maximum savings for the businesses unique situation. Records can establish for the tax preparer how much was spent on what, when it was, and aid in the determination of any depreciation that may exist.

Records can also be the key to avoiding audits. If the company is asked to clarify their claims made on their tax forms, records will be necessary. If the business is audited, they will also need to substantiate every claim made on their tax forms.

 

Keep good records

Keep good records

Benefits to Build

The new tax regulations may seem like a huge hassle to most. Although in terms of small business, these tax reforms mean a way to save some money on needed maintenance so that the company can put that money back in their pocket to grow. Better buildings, greater levels of stock on hand, as well as being enabled to hire more people will aid them in their successful growth and heightened bottom lines.

Itemization may also seem tantamount to task that increases complexity and paperwork needed. Although, in reality the itemization leads to greater deductions as well as more items that may be deducted from yearly tax responsibilities.

Saving money will always be the number one task of small business. The more they can save, the greater the bottom line and the better the chance to increase sales and revenue. Small businesses will realize enhanced tax savings with the new regulations despite the complexity, effort, and time.

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