Irs Gives Employees And Employers Unique Way To Help Katrina
Victims

The IRS has never been known as a creative beaurocracy To
promote donations to Katrina victims, however, it is being very
creative
The IRS has come up with Hurricane Katrina Leave Donation
Program to help out those in need through special tax treatment
rules In a ground breaking program, employees can donate their
vacation and sick leave donations by asking their employer to
make a cash donation equivalent to the amount that would
otherwise be paid
Employees
Employees benefit from this new program in two ways First, they
can make donations without taking money out of their current
cash savings Second, the employee will not be responsible for
paying takes on the donated time, which would obviously be a
huge deterrent
Employers
Employers also benefit in two ways with this unique program
Initially, they can work hand in hand with employees to help the
relief effort Second, the employer can deduct the cash payments
as either a charitable contribution or normal business
deduction Importantly, employers are NOT required to pay
employment taxes on any donations This fact alone makes
participating in the Hurricane Katrina Leave Donation Program a
worthwhile venture
The IRS has really stepped to the plate to help the victims of
Hurricane Katrina Often reviled, the Agency should get a
standing ovation for taking these steps

Tags | benefit, business, charitable, contribution, deduction, donations, ovation, savings, victims, worthwhile