A new federal program allows employees to donate their vacation, sick or personal leave to help victims of Hurricane Katrina.
Under Notice 2005-68, employees can exchange their leave for employer cash contributions to qualified tax-exempt organizations providing relief to Hurricane Katrina victims.
The Department of the Treasury and Internal Revenue Service officials recently announced that employees do not have to include the donated leave in their income, and employers can deduct the amount of the cash payment. The donations must be made before Jan. 1, 2007.
For more information, visit www.irs.gov.