UMG has partnered with PTO Exchange, a vendor that provides employees the option to convert a portion of their accrued and unused vacation to a variety of different employee benefits during their employment. Specifically, accrued and unused vacation can be converted to:

• Student loan and school tuition payments
• Donations to charitable organizations
• Travel expense payments; or
• Cash payments

How to get started

Visit the PTO Exchange website to access and use the program (via SSO).

For questions regarding the program, please contact PTO Exchange at support@ptoexchange.com.

Requirements for exchange

Exempt (salaried) employees

Exempt employees of UMG who have frozen vacation balances as of December 31, 2021, can convert their “frozen” balance on PTO Exchange. 

You can exchange a maximum of 10 “frozen” PTO days in a calendar year, while the minimum that can be exchanged during any one transaction is 1 day. 

Vacation time under UMG’s Flexible Paid Time Off are not eligible for exchange on the PTO Exchange platform.

Non-exempt (hourly) employees  

Non-exempt employees of UMG must have a minimum vacation balance of 40 hours before they can exchange their accrued time off on the PTO Exchange platform. 

You can exchange a maximum of 80 hours in a calendar year, while the minimum that can be exchanged during any one transaction is one hour.

Personal days are not eligible for exchange on the PTO Exchange platform. All accrued hours not exchanged on the PTO Exchange platform are subject to UMG’s standard Non-Exempt Vacation Policy.

Notice about taxes and service charge

Taxes

All PTO Exchange transactions (including donations and cash payments) are subject to required tax withholding and reflected on your regular UMG paycheck as taxable income based on your current salary at the time of the transaction.

Service Charge

In addition to any required payroll tax withholdings, all employees exchanging time off must accept a service charge of 7.5% of the value of the vacation time exchanged, which is required by the IRS. This charge is paid directly to PTO Exchange for use of its platform.  Please see examples of the taxable payroll transactions in the policy.

PTO payout upon termination

Any accrued and unused PTO that was not converted through PTO Exchange, including any remaining “frozen” balance for exempt employees, will be paid out to employees when they leave the Company.

Such accrued and unused vacation payout at time of employment separation shall be subject to applicable withholding taxes but shall not be subject to any service charge.

Resources (these documents can be at the bottom)

• PTO Exchange Policy
• PTO Exchange FAQs