Pension & Benefits News IRS encourages leave-based donation programs due to Hurricane Michael
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Saturday, November 3, 2018

IRS encourages leave-based donation programs due to Hurricane Michael

By Pension and Benefits Editorial Staff

In Notice 2018-89, the IRS has provided special relief designed to support leave-based donation programs to victims of Hurricane Michael. These programs allow employees to forgo vacation, sick, or personal leave. In return, the employer makes cash donations to charitable organizations that provide relief for victims of the disaster.

Under this special relief, donated leave will not be included in the income or wages of the employees and employers will be permitted to deduct the cash payments as business expenses. The relief applies to employers’ cash payments to charitable organizations providing relief for the victims of Hurricane Michael made before January 1, 2020.

SOURCE: Notice 2018-89, I.R.B. 2018-49, November 19, 2018.

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