# What is PTO (Paid Time Off)?

PTO is paid leave employees can use for holiday, sickness, or personal needs. SMEs must track balances and policies fairly.

Source: https://faqtic.co/glossary/pto

## Why it Matters for SMEs

- Ensures fairness
- Improves planning
- Supports wellbeing

## Example in Practice

PTO balances auto-calculated in Factorial.

## Frequently Asked Questions

### PTO vs sick leave?

PTO is a combined allowance.

### Common in SMEs?

Yes, as a simple policy.

### Track in HR tools?

Yes, with leave modules.

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Canonical HTML: https://faqtic.co/glossary/pto