Treatment of Leave-Based Donation Payments

 The Internal Revenue Service will not assert that cash payments an employer makes to organizations in exchange for vacation, sick, or personal leave that its employees elect to forgo constitute gross income or wages of the employees if the payments are (1) made to the organizations for the relief of victims of Hurricane Michael; (2) paid to the organizations before January 1, 2020.

Electing employees may not claim a charitable contribution deduction with respect to the value of forgone leave excluded from compensation and wages.