Earlier today, the Internal Revenue Service (IRS) issued two new items of guidance regarding the Ebola crisis in Guinea, Liberia and Sierra Leone. The first guidance offers special relief for leave-based donation programs to aid Ebola victims in the aforementioned countries. The other guidance names the Ebola outbreak in these West African countries a “qualified disaster” for federal tax purposes.
The leave-based donation guidance would allow employees to donate their paid vacation, sick or personal leave and employers will make cash payments to tax-exempt organizations that are providing relief for the victims of Ebola in Liberia, Guinea or Sierra Leone. This program will allow for employer cash payments until January 1, 2016. For this period, the donated leave will not be included in the sum of income or wages of the employees. Furthermore, employers will be able to deduct the amount of the cash payment, also a boon for them.