PTO

jayb

Lots of pros and cons re Paid Time Off policies.. What are the ramifications of allowing people to give their own unused pto days to a co-worker who has had an emergency after using up all his/her time under a pto plan?

Candycane

It would depend on how your policy is set up.  One initial problem that has come up before is that there might be hurt feelings between employees if they donate to one ee and not another.

 At what "severity" level does one qualify?

Is there an STD program available? 

What if nobody steps up and donates?

Constructive receipt of benefits not earned or taxed to the correct party.  (you might be able to set up a PTO donation fund to avoid this- talk with your tax accountant)

Differences in pay levels.

How to keep it confidental.

fnord

the IRS has decided that PTO is considered income when it is paid.  So the recipient will have taxable income for the PTO received, while the employee donating the time does not.  To avoid potential claims of discrimination, make sure that you decide upon a policy that describes the plan.  how much can be donated, what determines an emergency, how much may be withdrawn per employee/incident, etc.  Then follow that plan.

 26 CFR 1.61-2: Compensation for services, including fees commissions, and similar items.

REV. RUL. 90-29

marthacjs

But if you can get past the IRS and discriminatory obstacles - the payoff is fostering a compassionate workplace and team loyalty. The days of counting on employers to take care of employees for the long haul is long over. This is a step towards replacing that feeling of family.  (In the interest of full disclosure - my company does not do this but I know people who do.)