Thank you for supporting the Associate Financial Assistance program. Please be sure you're familiar with the following information and visit our FAQs before completing the form below: Your PTO gift will be converted into cash, based on your hourly pay rate, and approximately 40% of it will be taken out to cover taxes. The remainder is tax-deductible and will go to support the program you’ve selected.
Your PTO donation will NOT affect your net pay for the pay period. Your total reportable income for the year will increase by the total amount of PTO given. In most cases, this will not have an effect on your overall taxes, however we do recommend you consult with your tax advisor to ensure that you’re aware of any impact this may have on your year-end taxes (i.e. if this moves you into a new tax bracket).
Please note: a) 100% of your gift is considered reportable income. b) Your PTO gift is nonrefundable. c) Your PTO will be converted into a cash gift – per Centura Health policy, we cannot accept PTO designated for a specific associate.
Will my pay check be affected as a result of my donation of PTO?
Your pay check will not be affected by your PTO donation or the taxes that are withheld. However, the full amount of the PTO hours you donate does not go to Centura Health Foundation. A portion of if will cover required taxes, and the remaining amount will go to the program of your choice as a tax-deductible donation.
WHAT EFFECT WILL DONATING PTO HAVE ON MY TAXES?
Donating PTO to a Centura Health Foundation (“Foundation”) generally results in taxable income for the donating associate. The donating associate is required to recognize taxable compensation income equal to the value of the donated PTO under the IRS’s assignment of income doctrine. Under the assignment of income doctrine, individuals realize taxable income if they have the right to receive it or the power to dispose of it even if the payment is made directly to a charity. Consider consulting a tax professional about your personal tax situation.
Will I have to pay income taxes on my PTO gift?
Yes, the value of your PTO donation to the Foundation will be taxed as income by both the U.S. Government and the State of Colorado.
Will I have to pay employment taxes on my PTO donation
Yes, FICA (Medicare and Social Security) taxes must also be withheld from your PTO donation because it is taxable for employment taxes as well.
How will these taxes be paid?
Income tax withholding at supplemental income rates and FICA tax withholding will be made out of the amount of money you donate. The hours that you donate are converted to cash. Employment and income taxes are withheld. The remaining amount is contributed to the Foundation.
Can I deduct the amount of my PTO donation to Centura Health Foundation?
Because the value of your PTO donation is made to the Foundation, a charitable organization, donor associates are generally permitted to take a charitable contribution deduction under Internal Revenue Code Section 170. Consider consulting a tax professional about your personal tax situation.
How will I know how much to deduct on my taxes
The Foundation will provide you with a statement of the value of your donation to substantiate the donation for tax purposes. The income you recognize by making the gift will be reported to you on a Form W-2,Wage and Tax Statement.