Thursday, February 21, 2008
IRS Gives Employees-Employers Unique Way To Help Katrina Victims
The Internal Revenue Service have never been known as a originative beaurocracy. To advance contributions to Katrina victims, however, it is being very creative.
The Internal Revenue Service have come up up with Hurricane Katrina Leave Contribution Program to assist out those in need through particular tax treatment rules. In a land breakage program, employees can donate their holiday and ill leave of absence contributions by asking their employer to do a cash contribution equivalent to the amount that would otherwise be paid.
Employees benefit from this new programme in two ways. First, they can do contributions without taking money out of their current cash savings. Second, the employee will not be responsible for paying takes on the donated time, which would obviously be a huge deterrent.
Employers also profit in two ways with this alone program. Initially, they can work manus in manus with employees to assist the relief effort. Second, the employer can subtract the cash payments as either a charitable part or normal business deduction. Importantly, employers are NOT required to pay employment taxes on any donations. This fact alone do participating in the Hurricane Katrina Leave Contribution Program a worthwhile venture.
The Internal Revenue Service have really stepped to the plate to assist the victims of Hurricane Katrina. Often reviled, the Agency should get a standing standing ovation for taking these steps.