The announcement said that employees can contribute days or weeks of vacation, sick leave, or personal leave time, and the employer will donate the cash value of the leave time to Hurricane Katrina Relief. In return, businesses can deduct the amount of the donation on their state tax filing. This means the value of the leave time will not have to be declared as taxable income by the employee.
The announcement said that this action was prompted by the federal government’s similar announcement that federal workers can actually donate their leave time to other federal workers affected by Katrina that may need more days off from work (See Federal Workers Can Donate Leave To Katrina Victims ).
The FTB announcement is here .
In addition, an announcement made on California’s Board of Equalization (BOE) Web site says that California will grant a deadline extension for taxpayers affected by Hurricane Katrina.
According to the announcement, any taxpayer or fee payer whose filing or payment has been delayed due to the effects of the hurricane in Louisiana, Mississippi, Florida, or Alabama, or the delay in mail processing because of the hurricane, can be granted a one month extension for their filing or payment.
The announcement also said that John Chiang, chairman of the state’s BOE, has announced that purchases made with an American Red Cross Client Assistance Card or FEMA E-funds Assistance Card will not be subject to California sales and use taxes.
The BOE announcement is here .
« Firms Get Ready for Upcoming Retirement Rush