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PTO, time off and timesheets: the basics in plain words

What PTO means, what time off and a timesheet are, and the kinds of leave policy you can set up in StartEase Payroll. Start here.

EmployersEmployees5 min

The three words, in one line each

WordWhat it meansA simple example
PTO"Paid time off": days off work that are still paid.Priya takes Friday off and still gets paid for 8 hours.
Time off (leave)Any time an employee is away from work, paid or unpaid. PTO is one kind of time off.A vacation day, a sick day, a day for jury duty.
TimesheetA list of the hours an employee worked each day in one pay period.Mon 8, Tue 9.5, Wed 8 ... total 40 hours.

Think of it like a school report: the timesheet says when you were in class, and time off says when you were away and why.

What is a time-off policy?

A policy is a rule for one kind of leave. It answers a few simple questions:

  1. What is it called? For example "Vacation".
  2. Is it paid? Paid or unpaid.
  3. How does the balance grow? By hours worked, a fixed amount each year, or unlimited (no balance kept).
  4. What are the limits? For example the most hours someone can hold, how much carries over to next year, and how many days of notice to give.
  5. Who does it cover? All employees, or only some.
  6. Who approves? Each request by hand, or approved automatically.
A Vacation policy: 80 hours a year, paid, spread over each paycheck.
A Vacation policy: 80 hours a year, paid, spread over each paycheck.

Kinds of leave you can set up

A company picks the policies it wants. StartEase Payroll offers these kinds:

KindWhat it is for
PTO or vacationRest and holidays the employee chooses.
SickWhen the employee, or someone they care for, is ill.
Personal dayA day for anything personal, with no reason needed.
Floating holidayA holiday the employee picks, for example a religious or cultural day.
BereavementTime after a family member dies.
Jury dutyTime spent serving on a jury.
ParentalTime after a birth, adoption or foster placement.
VolunteerTime to help a charity or the community.
Learning and developmentTime for a course, exam or training.
Weather or emergencyWhen the workplace closes, for example for a storm.
CustomAnything else, with your own name.

Every block, box and dropdown of the policy editor is explained in Time-off policy settings explained.

Separately, company holidays (like New Year's Day) are set once for the whole company on the Time off page. They are not a policy. See Company holidays: how to set them up. The federal holidays you tick move to each new year's dates by themselves, for example Memorial Day is always the last Monday of May. A holiday you add yourself repeats only if you tick Every year; otherwise add next year's date.

Three ways a balance can grow

Tip. Leave is earned only when a payroll is approved. If a balance looks low, check whether the last payroll has been approved yet.

Some kinds need an extra check

Some states and cities have their own rules for sick leave, and other kinds (jury duty, parental, weather, custom) can be affected by local rules too. StartEase does not decide these for you. A sick policy shows Check the rules for this work location, and employees cannot use it until a payroll admin has checked it and confirmed it.

A new sick policy. It stays off until a payroll admin checks the rules for each work location and confirms it.
A new sick policy. It stays off until a payroll admin checks the rules for each work location and confirms it.
Note. This page explains how the software works. It is not legal advice and does not say what any law requires. For the state sick leave settings StartEase already tracks, see Company PTO and paid sick leave, and for the official page in each state and city, State and city paid sick leave laws.