Starting or need help complying with the rules associated with an Employer Sponsored Assistance Program? These programs provide financial support to employees in need and boost morale. In many cases, the assistance can qualify as a tax-free gift.
The benefits you can provide depends on if you’re structured as a public charity, donor advised fund or private foundation. Benefits may include assistance for personal hardships and disasters, such as an illness or house fire. Or, benefits may be limited to qualified disasters like presidentially declared disasters and results from terrorist actions.
Proper planning and documentation are crucial when deciding whether to implement a program. Failure to design the program in accordance with the rules and regulations may have an impact on your organization’s tax-exempt status and could create taxable compensation to your employees. An advisor can ensure your program will meet the needs of your organization and your employees.
We’ve worked with a variety of nonprofit organizations to set up employer sponsored assistance programs that cater to their unique situation. We can help you determine the best course of action and prepare proper documentation so you'll remain in good standing with the IRS. We'll make sure that you understand each step of the process and that the overall plan meets your needs.
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