Cash for sick time

National Guard

We do have a sick buy back program already in place. It is limited to 80 hours and must be requested within 2 weeks of ee's anniversary date. One of our supervisors asked if he could convert his sick time to cash and donate it to Katrina. He said he had heard that other companies were already doing this. If your company has done this or you know of a company that is, could you share how it is done? Share the details. Even so, I'm sure there are lots of smart forumites that could suggest how this would be handled?

Thanks

awilliams

Americans all across the country are searching for ways to help hurricane victims. One method of employee generosity that gained popularity during the aftermath of the September 11, 2001 attacks, and is coming back into favor is the donation of paid leave time. In a typical program, the employee would designate a certain amount of paid leave time – such as sick or vacation pay – which the employer would convert to a cash value and donate to a charity. The IRS has issued Notice 2005-68, which allows these donations to be excluded from taxable income, and simultaneously allows businesses to deduct the donations as a business expense. Here is the IRS website for that information: [url]www.irs.gov/newsroom/article/0,,id=108362,00.html[/url]

I believe I came across a website that would help employers set-up these programs. Let me see if I can find it.

Anne Williams
Attorney Editor
M. Lee Smith Publishers, LLC

National Guard

Great, Thanks

Open1

Thank you!