I have heard of corporate policies in place where a company will let their employees work (donate their time) at non-profits and will write the time off. I don't know if it is a tax write-off or just a good will gesture. Perhaps there is some other way to adjust their accounting numbers than allows them to deduct the employees time ($) somehow?
Thank you!
2007-05-11 05:54:10 · 7 answers · asked by nu11d3v 1 in Business & Finance ➔ Taxes ➔ United States
If you assign your employee to work at a nonprofit and you pay the employee wages, those wages are deductible as a business expense (payroll), not a charitable contribution.
If the employee donates his time for no pay, the employer has no deduction of any kind.
2007-05-11 08:07:49 · answer #1 · answered by ninasgramma 7 · 2⤊ 0⤋
I think that the wages paid while the employees are performing services for a charity should be analogous to out-of-pocket expenses of an individual in connection with providing services, and so should be deductible. Although the time of an individual donor has no value for this purpose (theoretically it has value, but any charitable contribution is offset by the unreported imputed income), the wages paid are a clear and measurable cost.
2007-05-11 08:03:22 · answer #2 · answered by TaxGuru 4 · 0⤊ 0⤋
The wages paid are already a deductible business expense. The employer does not get to deduct them again as a charitable contribution as that would be a double benefit and double benefits are a no-no with the IRS.
2007-05-11 08:46:36 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
No.
Per IRS rules, time has no value.
If the company gives money to the charity instead of or in addition to paying the employees, then they get a deduction for that.
2007-05-11 07:13:52 · answer #4 · answered by Wayne Z 7 · 0⤊ 2⤋
with regard to the only government grants i comprehend of is in cities that decide to rebuild their downtowns. A catering provider would not fit this kind, because of the fact it won't force corporation into downtown. yet, i might start up at city hall or your county courthouse. forget approximately state and federal grants. One individual reported that there have been not grants obtainable to for-income companies ... it is faulty. There are certainly grants obtainable to for-earnings, yet they are all innovation grants (i've got been valuable in getting 2 for purchasers).
2016-12-11 06:34:47 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Sounds like this is a question for your H.R. person as all companies vary in policies. But, I have heard of this being done before.
2007-05-11 05:59:49 · answer #6 · answered by lbeth 2 · 0⤊ 0⤋
I believe this can only be done if you are still paying your workers their normal wage while they are donating their time.
2007-05-11 06:27:16 · answer #7 · answered by mariposa6009 2 · 0⤊ 0⤋