Employees who can opt to donate their unused leave to organizations helping these victims will not be taxed on what would otherwise be taxable compensation. However, they cannot take a charitable contribution deduction for the donation. The employer will see that the donations are sent to IRS-approved charities.
Note: The last time the IRS granted this favorable tax treatment for donations of unused leave was in the aftermath of Hurricane Katrina.
A portion of earnings withheld by an employer or put into a retirement plan for distribution to the employee at a later date. If certain legal requirements are met, the deferred amount is not taxable until actually paid, for example, after retirement.