Your Employees can Donate Their Vacation Time to Aid Victims of Hurricane Sandy
|November 7, 2012||Posted by Steve Webster under Payroll, Southern Indiana Business, Taxes|
The IRS has issued Notice 2012-69 that says employees can elect to forgo vacation, sick, or personal leave in exchange for cash payments that their employer makes to qualified relief organizations described in § 170(c) of the Internal Revenue Code. A similar notice was issued following Hurricane Katrina and the 9/11 terrorist attacks.
The donation will not be considered as taxable income to the employees as long as the employer makes the payment to a qualified charity before January 1, 2014. I am not sure why but the notice also states that the donation can not be claimed as a charitable contribution by the employee.
You can use this link to see if a charity qualifies.
[schema type=”person” name=”Steve Webster” city=”Sellersburg” state=”Indiana” postalcode=”47172″ ]