IRS Confirms Major Disaster Leave-Sharing Program Use for COVID-19 Pandemic

Matthew P. Chiarello • September 25, 2020

On August 3, 2020, the IRS posted a short set of frequently asked questions for leave-sharing programs which confirm that major disaster leave-sharing programs under IRS Notice 2006-59 can be used for employees who have been adversely affected by the COVID-19 pandemic.  As a reminder, major disaster leave-sharing programs under Notice 2006-59 permit employees to donate paid leave to their co-workers who are adversely affected by a “major disaster.”  When properly structured, the donated leave is excluded from the gross income of the donor and included in the gross income of the recipient.  President Trump has declared major disasters due to COVID-19 for all 50 states and the District of Columbia.

Major disaster leave-sharing programs are one of three types of leave-sharing programs available to employers during the COVID-19 pandemic. Our previous SW Benefits Blog posts, “ Two Leave-Sharing Program Options for Employers During the COVID-19 Pandemic ” and “ IRS Approves Additional Leave-Based Donation Programs for COVID-19 Relief ” discuss these leave-sharing programs in detail.  Employers may want to consider consulting with counsel when setting up a leave-sharing program, as they are surprisingly complex and improper administration and documentation can result in negative tax and other consequences.

Employee burnout: what it is and how to prevent it

By Mardy Gould • May 24, 2024
Employee burnout has become an epidemic in today’s modern workplace. So much so that the World Health Organization (WHO) officially recognizes it as an “occupational phenomenon.”1 While many used to consider mounting workplace stress an individual employee problem, these days, it’s become an employer’s responsibility to prevent burnout before it hurts productivity and business performance—not to mention your employees’ physical and mental health. Luckily, you can prevent burnout from affecting your workforce in several ways. This article will explore the causes and signs of employee burnout and the steps you can take to create a positive work environment where employees feel safe from toxic stress levels.

Form 720 and PCORI fee FAQs

By Mardy Gould • May 23, 2024
If you're a small business owner, you may have heard of the acronym PCORI and the fees that come with it. But what is PCORI, and how does it apply to your organization? Under the Affordable Care Act (ACA), sponsors of self-insured health plans must pay a fee to fund the federal Patient-Centered Outcomes Research Institute (PCORI). PCORI is an independent organization the ACA created to conduct research to help healthcare consumers make better decisions for their specific needs and outcomes. It also performs research related to clinical effectiveness. Employers offering a self-insured medical reimbursement health plan, such as a health reimbursement arrangement (HRA), must pay this fee by July 31 each year via Form 7201. This fee was initially set to expire in 2019, but Congress extended it through September 30, 20292, due to the Further Consolidated Appropriations Act of 20203.
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