During open enrollment, you can convert up to 80 hours of PTO you will earn the next calendar year (in 8-hour increments) to pay for your benefits. The value of the PTO hours will be added to your paycheck over 26 pay periods.
To be eligible to convert PTO, you must elect at least one of the following benefits: medical, dental, vision, health care spending account, day care spending account, additional life insurance, additional AD&D insurance, additional long-term disability, accident insurance, hospital indemnity insurance, or critical illness insurance. You are limited to a combined total of 100 hours per year for converting, selling, and donating PTO.
- You may sell PTO two times a year, up to an annual total of 80 hours
- You must maintain at least 40 hours of PTO after the sale.
- You may sell a maximum of 80 hours per year.
- Due to IRS regulations, the combined amount of PTO you convert, sell, and donate must be less than 100 hours per year.
- When you sell PTO, you will receive 80% of the value of your sold PTO hours as a cash payment and will be subject to applicable payroll taxes and 401(k) deductions (if you are enrolled in the 401(k) Plan).
- PTO may not be sold from the last paycheck of the year.
You may donate your PTO hours to certain charities. Up to 80 hours can be donated each year as long as you maintain at least 40 hours of PTO after the sale. The hours you donate are included in the 100-hour annual maximum for the selling, converting, and donating of PTO. When you sell your PTO for donation to a charity, the proceeds are reported as taxable income to you. Your PTO donation will be subject to applicable payroll taxes.