IRS Allows Paid Leave Donation for Hurricane Maria Relief Victims

On Oct. 6, 2017, the IRS released Notice 2017-62, which provides guidance for the treatment of cash payments made by employers under leave-based donation programs to assist victims of Hurricane Maria. This notice is similar to previous IRS guidance released for Hurricanes Harvey and Irma.

In general, under leave-based donation programs, employees may elect to forego sick, vacation or personal time off in exchange for cash payments the employer makes to charitable organizations. According to the notice, cash payments made under leave-based donation programs will not constitute income or wages for employees as long as the payments are made to charitable organizations for the relief of Hurricane Maria victims prior to Jan. 1, 2019.

Therefore, employers who participate in leave-based donation programs for relief of Hurricane Maria victims should work with their tax professional or tax counsel to determine applicable tax accounting and reporting.

IRS Notice 2017-62 »