The IRS has announced that employees who decided to donate their vacation, sick pay or personal leave hours to the victim of COVID-19 will not be taxed for the compensation. The employees will not be taxed on the forgo of these benefits nor take a deduction for it. However, because employers did contribute to the COVID-19 victims will be able to take business expenses for the donation made on behalf of their employees.
IRS provides guidance on employer leave-based donation programs that aid victims of the COVID-19 pandemic
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