Employee Engagement: US employees can donate vacation to assist Katrina victims

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September 13, 2005

US employees can donate vacation to assist Katrina victims

The US Treasury and Internal Revenue Service issued a very interesting program this week to help out victims of hurrican Katrina, which devasted parts of the southern in late August. Their announcement is below:

Treasury IRS Announce Special Relief to Encourage Leave-Donation Programs for Victims of Hurricane Katrina

Department of the Treasury and Internal Revenue Service officials announced today special relief intended to support leave-based donation programs to aid victims who have suffered from the extraordinary destruction caused by Hurricane Katrina.

Under these programs, employees donate their vacation, sick or personal leave in exchange for employer cash payments made to qualified tax-exempt organizations providing relief for the victims of Hurricane Katrina.

Under Notice 2005-68, employees can forgo leave in exchange for employer cash payments made before January 1, 2007, to qualified tax-exempt organizations providing relief for Hurricane Katrina victims. Employees do not have to include the donated leave in their income. Employers will be permitted to deduct the amount of the cash payment.

Posted by Christopher at September 13, 2005 7:29 AM