The IRS has provided guidance on the tax treatment of leave-based donation programs to aid victims of Hurricane Harvey. Similar relief has been given for Hurricane Irma. If the company sets up such a program, then employees can forgo wages or other accrued compensation as a donation to relief for victims and the employer gets a deduction for this charitable donation. Employer donations to tax-exempt organizations must be made before January 1, 2019.
Barbara Weltman
Big Ideas for Small Business, Inc.
Subscribe and download our eBook, "150+ Tax Deductions for Small Business A to Z."
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