As you are aware, Hurricane Sandy left a path of devastation across the East Coast. The IRS has provided an interesting way to help those affected rebuild.
If you are an employer, you may offer for your employees to donate their paid-time-off (sick, vacation, etc.) to a charity working in the area, from now until January 1, 2014.
Here’s how it would work:
Employee designates how many hours of leave they’d like to donate.
That leave would be cashed out directly to the charity.
This transaction would NOT be taxable to the employee (or the employer).
One note, because this is not taxable, the donation is also not tax-deductible to the employee.
If you are an employee, ask your employer if they will participate.
Please let us know if you have any questions. If we are your payroll company, we’d be happy to help you offer this to your employees.
Ref: IRS Notice 2012-69