New Guidance Issued on Employee Leave Sharing Plans

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For those adversely affected by COVID-19, the IRS issued FAQs which said employers may setup leave-sharing programs. Employees would be able to deposit leave into an employer-sponsored leave bank for other employees to use.

Employees depositing leave in a qualifying plan:

• May not claim an expense, loss deduction, or charitable contribution for the deposited leave
• Do not include the deposited leave in wages or income

IRS Notice 2006-59 provides more information about the eight requirements a qualifying plan must have in order for donor employees not to be taxed on their donated leave.

Download the bulletin for more details.

This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.