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Sick Leave Direct Donation

Individual employees may voluntarily donate sick leave hours to another employee as authorized by Texas 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 sick leave 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 may use donated hours for several reasons, including:

  1. During the 160-hour waiting period for sick leave pool purposes
  2. After the employee has exhausted his or her pool benefit
  3. For less catastrophic conditions which do not rise to the level to need 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 the following forms:

  • Tax Considerations

    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 25% income tax, Medicare, and applicable social security withholdings. Individuals making a donation are encouraged to consult a tax advisor.

  • Information for Sick Leave Donors

    Procedure

    Employees who wish to donate sick leave to another employee will complete the above form and submit it to benefits@tamhsc.edu

    An employee is not required to be in a leave-accruing position at the time a donation is made, but will need to have sufficient hours to cover the donation.

    A donor may donate any amount of his or her available sick leave accruals to an eligible recipient.

    Tax Implications

    In accordance with Internal Revenue Service policy, unless a medical emergency applies the cash value of donated sick leave is includable 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 25% income tax, Medicare, and applicable social security withholdings.

    Individuals making a donation are encouraged to consult a tax advisor.

  • Information for Sick Leave Recipients

    Eligibility

    Employees may receive hours if they meet all of the following conditions:

    • are in the same agency (Health Science Center) as the donor;
    • have exhausted all of their sick leave accruals;
    • have exhausted any previously donated hours they received; and
    • have exhausted the full allocation of hours from the sick leave pool.

    FAQs

    1. Can the Recipient have a Vacation Leave Balance? Yes
    2. Can the Recipient have a Sick Leave Balance? No
    3. Can the Recipient have Sick Leave Pool Balance? Maybe
    4. Can the Recipient have Donated Sick Leave Balance? No
    5. Does the Recipient Need to be Out More than 160 Hours? No
  • Sick Leave Direct Donation Transactions

    Upon full completion of the Sick Leave Direct Donation - Donor Form, the form should be submitted to Human Resources for review the donation request and confirmation of eligibility. Following approval of the donation, Human Resources 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 donations will be processed by Human Resources deducting sick leave hours from the donor's account and adding the donation to the recipient's donated sick leave. A confirmation notice will be sent to the HR Liaison/Leave Administrator for each of the respective departments. Human Resources will notify a department to make the necessary transactions if another leave database is utilized by the donors’ or recipients’ department.

  • Example Scenarios

      Vacation Balance Leave Sick Leave Balance Sick Leave Pool Balance Donated Sick Leave Balance Out more than 160 hours? Eligible to Receive
    Employee 1: 40 40 0 0 No Nothing 1
    Employee 2: 40 0 0 0 No Sick Leave Donation 2
    Employee 3: 0 0 0 0 Yes Sick Leave Pool 3
    Employee 4: 0 0 0 20 No Nothing 4
    Employee 5: 40 0 0 20 Yes Nothing 5
    Employee 6: 0 0 40 0 Yes Sick Leave Donation only if not related to condition approved for Sick Leave Pool 6
    Employee 7: 0 0 Exhausted max 720 hrs 0 No Sick Leave Donation 7
    or Additional Paid Sick Leave
    1. The employee has a sick leave balance of 40 hours, so he or she is not eligible to receive donated sick leave or SLP hours.
    2. The employee has a zero balance in sick leave, SLP, and donated sick leave. He or she has not satisfied the 160 hour requirement, so SLP cannot be accessed. However, they are eligible to receive a sick leave donation.
    3. The employee has a zero balance in all leave types, and has been out for 160 hours. The employee should apply for pool hours. If the pool request is denied, the employee may receive a sick leave donation.
    4. The employee has a donated sick leave balance of 20 hours, so he is not eligible to receive donated sick leave or SLP hours.
    5. The employee has a SLP balance of 20 hours, so he or she is not eligible to receive any donated sick leave.
    6. The employee has a 40 hour SLP balance; therefore may not receive sick leave donations unless the donation would be used for a sickness not covered under the Sick Leave Pool approved condition.
    7. The employee has exhausted the sick leave pool benefit, but may continue to receive sick leave donations or may apply to receive additional paid sick leave according to TAMU Rule 31.03.02 – Sick Leave (PDF).

Additional information regarding this new leave benefit will be available in the near future. Please contact HSC Payroll/HR Services at benefits@tamhsc.edu or 979-436-9209 with any questions.

Last edited by: westbrook 09/28/2017