Our Guidance

A new employee benefit: employers and employees can team up to help Hurricane Harvey victims. 

It’s a temporary program from the IRS, and here’s how it works. Employees agree to work instead of using PTO or other vacation time. They still get paid but lose their PTO for a good cause. The employer contributes an amount equal to the value of those foregone days to a 501(c) organization specifically to help victims of Harvey. The employer can then claim a business deduction rather than a charitable deduction. There is no effect on the employee’s W-2 and this donation will not be taxed to them. Of course, they cannot claim a tax deduction for it. More details in the IRS Notice 2017-48 here.