CPM Leave Management & PTO Accruals Flashcards

Under the federal FMLA, what notice must an employee provide to qualify for unforeseeable leave?

Answer: Notice as soon as practicable, generally the same day or the next business day

For unforeseeable FMLA leave, employees must provide notice as soon as practicable — generally the same day or next business day after learning of the need.

How does the IRS treat employer-paid short-term disability (STD) benefits from the employee's perspective?

Answer: Taxable income to the employee if the employer paid the premiums

When an employer pays STD insurance premiums, benefits received by the employee are taxable wages subject to federal income tax (and generally FICA).

What is a 'PTO accrual cap'?

Answer: A limit on the total PTO balance an employee can accumulate before accrual stops

An accrual cap is a policy ceiling on the total PTO balance; once reached, the employee stops earning additional PTO until the balance drops below the cap.

Which of the following is NOT a qualifying reason for FMLA leave?

Answer: Taking a personal vacation to recover from minor stress

FMLA does not cover routine personal vacations or minor conditions that do not meet the definition of a serious health condition.

How must payroll handle the premium deductions for health insurance during an employee's unpaid FMLA leave?

Answer: The employer must maintain group health coverage under the same terms; the employee remains responsible for their share of premiums

Employers must continue group health insurance on the same terms during FMLA leave, and employees are still responsible for their normal share of premiums.

What is 'unlimited PTO' from a payroll accounting perspective?

Answer: A policy with no accrual and no defined balance, meaning there is typically no liability to record on the balance sheet

With unlimited PTO, employees do not accrue a defined balance, so employers generally record no PTO liability on the balance sheet.