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Sick Leave Direct Donations

Individual employees may voluntarily donate sick leave hours to another employee as authorized by House Bill 1771. A sick leave donation to another employee should not be confused with a donation of hours to the Sick Leave Pool.

This leave benefit is another option to assist those who have exhausted their available leave and sick leave pool to remain in a paid leave status and allow them time off to recover from an illness or injury. Employees may also use donated sick leave to care for eligible family members  Employees must first use their own leave prior to using donated sick leave. See sick leave use eligibility for more information.

General Information

Employees may use donated hours for several reasons, including:

1) during the 80-hour waiting period for sick leave pool purposes,

2) after the employee has exhausted his or her own leave and sick leave pool benefit, and

3) for less catastrophic conditions which do not rise to the level of the need for sick leave pool hours.

Donated sick leave will be used in accordance with sick leave regulations, with the exception that donated hours cannot be used for retirement credit. An employee may not provide or receive remuneration or a gift in exchange for a donation.

Sick leave donations will be processed using these forms:

Sick leave donations will be considered a taxable event to the donor unless the situation qualifies as a medical emergency pursuant to IRS guidelines. For sick leave donation purposes, a medical emergency is defined as "a major illness or other medical condition that requires a prolonged absence from work (40 hours), including intermittent absences that are related to the same illness or condition." Donations not qualified as medical emergencies will have the cash value of the donated sick leave included in gross income of the donor and will be treated as wages for employment tax purposes.

Such wages will be considered a lump-sum payment and subject to 22% income tax, Medicare, and social security withholdings. Individuals making a donation are encouraged to consult a tax advisor. Examples of Taxable and Nontaxable Events

Sick Leave Donors

  • Employees who wish to donate sick leave to another employee will complete the Sick Leave Direct Donation: Donor Form and submit it to their HR Professional.
  • A donor may donate any amount of his or her available sick leave accruals to an eligible recipient.
  • Important (tax implications): In accordance with Internal Revenue Service policy, unless a medical emergency applies the cash value of donated sick leave is included in your (the donor's) gross income and will be treated as wages for employment tax purposes with such wages being considered a lump-sum payment subject to 22% income tax, Medicare, and social security withholdings. Tax withholding for a Direct Donation cannot be withheld from a lump sum vacation payout.

Note: Once sick leave is donated, it will no longer be your property and may not be returned to the donor if the recipient is unable to use the donated sick leave. Donated sick leave may not be paid to the Estate, donated to sick leave pool or transferred to another employee


Sick Leave Recipients

Employees may receive hours if they:

  • Are in the same agency (Texas A&M System Member) as the donor;
  • Have exhausted all of their eligible leave accruals;
  • Have exhausted any previously donated hours they received; and
  • Have exhausted the full allocation of hours from the sick leave pool.

 

Sick Leave Donation Transactions

Upon full completion of the Sick Leave Direct Donation: Donor Form, the form should be submitted to HROE Leave Administration for review of the donation request and confirmation of eligibility. Following approval of the donation, the HR Professional will provide the Sick Leave Direct Donation: Recipient Form to the recipient for completion along with requesting appropriate medical certification to determine qualification for medical emergency.

Approved sick leave direct donations will be approved and processed by HROE Leave Administration.


Resources

For additional information please contact HROE Leave Administration at leave@tamu.edu or (979) 862-4027.