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Employee Donations

Hello, We currently have an employee who was diagnosed with cancer and has been off work for 3 months; we do not have a return to work date. We have had other employees ask if they can donate part of their paycheck to him through an automatic payroll deduction as this situation is causing he and his family severe financial hardship. 1. Are the funds donated by the employee taxable to the donating employee? (I'm assuming yes, but just want to confirm) 2. Are the funds donated taxable to the receiving employee? 3. How do we pay those funds to the receiving employee? (Payroll vs. A/P) On to the second part of this topic, which I find quite sensitive. What is your company policy or past practices regarding a terminally ill employee? Do you keep them on staff indefinitely or terminate after a specified period of time? Just as an fyi, we are a local government employer in MI. Thank you for your assistance.

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