Notice 2023-69: Guidance on employer leave-based donation programs aiding Hawaii wildfire victims
Employees cannot claim a deduction for the leave that they donated to their employer
Guidance on programs aiding Hawaii wildfire victims
The IRS today released an advance version of Notice 2023-69 [PDF 121 KB] providing guidance for employers whose employees forgo sick, vacation, or personal leave to aid victims of the wildfires that began in parts of Hawaii on August 8, 2023.
As described in a related IRS release—IR-2023-181 (September 28, 2023)—Notice 2023-69 provides that cash payments employers make to charitable organizations during 2023 and 2024 providing relief to victims of the Hawaii wildfires in exchange for sick, vacation, or personal leave that their employees forgo will not be treated as compensation to the employees. Similarly, the employees cannot claim a deduction for the leave that they donated to their employer.
Employers, however, may deduct these cash payments as a business expense or as a charitable contribution deduction if the employer otherwise meets the respective requirements of the applicable sections of the Code.
For additional information regarding how employers can assist employees affected by a disaster, read a KPMG report: What’s News in Tax: Employers Helping Employees—Disaster Relief [PDF 172 KB]
For more information on assistance provided through charitable organizations, read a KPMG report: Employers providing employee hardship assistance related to coronavirus*
For more information, contact your usual KPMG tax professional or one of the following Washington National Tax professionals:
Ruth Madrigal | ruthmadrigal@kpmg.com
Preston Quesenberry | pquesenberry@kpmg.com
* Although this report was prepared to address ways to meet employee needs during a particular qualified disaster (the COVID-19 pandemic), the guidance is relevant to other qualified disasters, including the Hawaii wildfires, which were designated as a disaster on August 10, 2023. Read TaxNewsFlash
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