With the pandemic behind us and a red-hot summer in full swing, many of your company’s employees may be finally rediscovering the uninhibited joys of vacation. They might be having so much fun that they might highly value being able to buy even more paid time off (PTO) as an employee benefit. Such a thing is possible if your business sponsors a cafeteria plan. A “PTO buying” feature under a cafeteria plan allows employees to prospectively elect, during open enrollment, to buy additional PTO beyond that which they’d otherwise receive. The rules for PTO buying are complex. For example, the feature cannot defer compensation from one plan year to the next. Contact us for more information.
