Employee Benefits Blog

IRS Approves Additional Leave-Based Donation Programs for COVID-19 Relief

We previously posted about two leave-sharing programs available to employers during the COVID-19 pandemic: major disaster leave-sharing programs and medical emergency leave-sharing programs. These leave-sharing programs may allow employees to donate paid leave to co-workers affected by COVID-19. When properly structured under Internal Revenue Service (“IRS”) guidance, the donated leave is excluded from the gross […]

July 20, 2020 | 3 min read | Tagged: 2020-46, IRS, leave, leave donation, leave sharing, sick leave, tax

Russell M. Johnson Former Associate

Design Considerations for Medical Emergency Leave-Sharing Programs

Employers often allow employees to donate leave to co-workers who are experiencing medical emergencies. If properly structured, these leave transfers can be excluded from the gross income of the donor employee and included in the gross income of the co-worker recipient. There are no statutes or regulations governing these arrangements. The only formal guidance available […]

September 27, 2019 | 3 min read | Tagged: donation, leave sharing, Rev. Rul. 90-29, tax, vacation

Russell M. Johnson Former Associate