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Article:

What You Need to Know About Time Off

The Basics

The definition of paid time off is any time not worked by an employee for which the regular rate, a fixed or a prorated amount of pay, is accrued and paid to the employee. Companies grant time off to give employees down time and a chance to deal with non-work related issues. Despite the high costs of paid time off, companies offer this employee-friendly benefit primarily to be competitive in attracting and retaining talented employees.