--- title: How to Create a Limited Paid Time Off (PTO) Policy in Gusto description: In this article, readers will learn how to create a PTO policy in Gusto. --- [Skip to content](https://help.club.capital/en/faq/how-to-create-a-limited-paid-time-off-pto-policy-in-gusto#main-content) [![club 1 transparent](https://help.club.capital/hs-fs/hubfs/Logos/club%201%20transparent.png?width=2379&height=448&name=club%201%20transparent.png)](https://help.club.capital/en/faq/?hsLang=en) - Industries Show submenu for Industries - [Insurance](https://club.capital/industries/insurance/) - [Youth Soccer](https://club.capital/industries/youth-soccer/) - Solutions Show submenu for Solutions - [Monthly Accounting](https://club.capital/solutions/monthly-accounting/) - [Tax Service](https://club.capital/solutions/tax-service/) - [CFO Services](https://club.capital/solutions/cfo-services-for-your-business/) - [Digital Marketing Services](https://club.capital/solutions/digital-marketing-services/) - Resources Show submenu for Resources - [Our Company](https://club.capital/our-company/) - [Testimonials](https://club.capital/testimonials/) - [Webinars](https://club.capital/webinars/) - [Partnerships](https://club.capital/partnerships/) - [Referral Program](https://club.capital/referral-program/) - [Est-Tax-Payments](https://club.capital/est-tax-payments/) - [Podcast](https://club.capital/podcast/) - Blogs Show submenu for Blogs - [Small Business Finance Blog](https://blog.club.capital/) - [Youth Sports Finance Blog](https://blog.club.capital/sports) - [Marketing Blog](https://blog.club.capital/club-capital-marketing-blog) Open main navigation Close main navigation - Industries Show submenu for Industries - [Insurance](https://club.capital/industries/insurance/) - [Youth Soccer](https://club.capital/industries/youth-soccer/) - Solutions Show submenu for Solutions - [Monthly Accounting](https://club.capital/solutions/monthly-accounting/) - [Tax Service](https://club.capital/solutions/tax-service/) - [CFO Services](https://club.capital/solutions/cfo-services-for-your-business/) - [Digital Marketing Services](https://club.capital/solutions/digital-marketing-services/) - Resources Show submenu for Resources - [Our Company](https://club.capital/our-company/) - [Testimonials](https://club.capital/testimonials/) - [Webinars](https://club.capital/webinars/) - [Partnerships](https://club.capital/partnerships/) - [Referral Program](https://club.capital/referral-program/) - [Est-Tax-Payments](https://club.capital/est-tax-payments/) - [Podcast](https://club.capital/podcast/) - Blogs Show submenu for Blogs - [Small Business Finance Blog](https://blog.club.capital/) - [Youth Sports Finance Blog](https://blog.club.capital/sports) - [Marketing Blog](https://blog.club.capital/club-capital-marketing-blog) - [Go to Club Capital's Homepage](https://club.capital/home/) [Go to Club Capital's Homepage](https://club.capital/home/) Hello. How can we help you? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://help.club.capital/en/faq?hsLang=en) 2. [Payroll](https://help.club.capital/en/faq/payroll?hsLang=en) 3. [Paid Time Off](https://help.club.capital/en/faq/payroll?hsLang=en#paid-time-off) # How to Create a Limited Paid Time Off (PTO) Policy in Gusto ## In this article, readers will learn how to create a PTO policy in Gusto.   Set up a paid time off policy so you can keep track of time off taken by your employees and pay your team for vacation or sick hours when you run payroll. You can set up multiple policies to apply to different groups of employees, a vacation or sick policy, a combined paid time off policy, or a holiday pay policy. **Note**: Some cities and states have mandatory sick time regulations. [Check out this article for some state-specific resources to help you create a compliant policy](https://support.gusto.com/hc/en-us/articles/220967527). Here's how to set up a limited PTO policy: 1. Navigate to the **Time Off** section of your account. 2. Click the **Policies** tab. 3. Click **Create new vacation** policy. 4. Name your policy. 5. Select **Yes, there is a limit** to the amount of time off your team can take. 6. Select the way you’d like your team to accrue hours—a fixed amount or dependent on hours worked. - For fixed: enter the total time off per year and how it is earned. - For hourly: enter the amount of time off hours that employees will accrue based on the actual number of hours worked. 7. Select if you would like your employees to [earn by tenure](https://support.gusto.com/employees-contractors/employee-benefits/employee-paid-time-off/1066218751/Understand-your-PTO-policy.htm). If so, enter the anniversary where they will begin to earn more. Enter the total they will receive. Click **Add Milestone**. Click **Save & Continue**. 8. Select if you have a [waiting period](https://support.gusto.com/employees-contractors/employee-benefits/employee-paid-time-off/1066218751/Understand-your-PTO-policy.htm). If so, enter how long it is. 9. If they have a maximum balance, enter that as well. 10. Click **Save & Continue**. 11. Select who you would like to enroll in the policy. 12. 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