6/30/2021
Notice 2021-42: Treatment of Amounts Paid to Section 170(c) Organizations under Employer Leave-based Donation Programs to Aid Victims of the COVID-19 Pandemic extends the federal income and employment tax treatment provided in Notice 2020-46 to cash payments made to charitable organizations (section 170(c) organizations) after December 31, 2020 and before January 1, 2022, that otherwise would be described in Notice 2020-46.
Notice 2020-46 provided guidance on the federal income and employment tax treatment to employers and their employees of cash payments made before January 1, 2021 for the relief of victims of the COVID-19 pandemic in the affected geographic areas under employer sponsored leave-based donation programs.
Under leave-based donation programs, employees can elect to forgo vacation, sick, or personal leave in exchange for cash payments made by their employers to section 170(c) organizations.
IRB: 2021-29, July 19, 2021