2021 PTO cash-in election period coming
The YNHHS Paid Time Off (PTO) program’s cash-in feature gives eligible employees the option of cashing in PTO hours during the next calendar year.
The PTO cash-in election period for 2021 runs from Nov. 30 to Dec. 18, 2020 at 5 pm. Considering whether PTO cash-in is right for you is particularly important this year due to PTO program changes announced earlier this fall.
Specifically, PTO cash-in may be an attractive option for employees with high PTO balances; those who will be affected by changes in PTO payouts at retirement/resignation/termination; or employees who are part of the program to be eliminated at the end of 2022 that allows accrual of up to 1.5x of the annual maximum. Additionally, this is the final PTO cash-in election period before the program is discontinued at the end of 2021.
You can only cash in PTO time in 2021 that you earn during 2021. You may elect cash-in on request (you pick the pay period to elect a specific number of hours to cash in during 2021, provided you have accrued sufficient PTO hours in 2021 before that pay period). Or you may elect per-pay cash-in (you elect to cash in a specific, fixed number of hours over 25 pay periods during 2021, beginning with the Jan. 21, 2021 paycheck).
For the number of hours you may cash in based on your years of service, a summary of PTO changes that may influence your cash-in decision, or to use a PTO calculator to project your 2021 time-off needs, visit the Paid Time Off (PTO) section of the HRConnect
portal, in the “Leaves, Time Off and Workers' Compensation” box.
Any PTO elected for cash-in during this election period will be taxed, when paid to you, at the IRS Supplemental Wage Rate in compliance with IRS rules. All taxes (federal, state, Social Security and Medicare) on the value of the cash-in hours will total about 40 percent.
Between Nov. 30 and 5 pm on Dec. 18, 2020, you can make or change your 2021 cash-in election. Under IRS regulations, you may not change your PTO cash-in election during 2021.
Planning on cashing in 2020 PTO hours? Important reminders
If you participated in the 2020 PTO cash-in, the deadline for requesting a cash-in for unused elected hours is Dec. 5, 2020 at 11 pm. Make your election on Infor (click on the PTO Cash-In link to get to employee self service). If you do not make an election, the balance of what you had elected will be paid out in your Dec. 17, 2020 paycheck.
If you have questions or need more information, contact HRConnect, the YNHHS benefits service center, 844-543-2147 or www.ynhhs.org.hrconnect