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Old 08-28-2015, 05:06 PM
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Donating Employee Services

Can a corporation pay an employee to do work for government? My boss is also an elected County official. He hires people to do work for his County office, but puts them on his corporation's books. Essentially, he is making a donation to the County of his employee's services. How is this recorded, and is it deductible as a charitable donation. Thank you.



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Old 08-30-2015, 08:58 PM
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Can a corporation pay an employee to do work for government?=========>I think so; however it depends on the state employment law.

My boss is also an elected County official. He hires people to do work for his County office, but puts them on his corporation's books. Essentially, he is making a donation to the County of his employee's services. How is this recorded, and is it deductible as a charitable donation=========>> Charitable contributions to governmental units are tax-deductible o donors. Due to bad economic condition,. Cash donations to charities or other organization, political organization or etc dropped.So, companies donate their employees' time, advice and service instead of cash. Those donations rose according to the survey. But Only certain types of contributions, mostly CASH donation, qualify for a deduction for the C corp. on its corp return; in the case of volunteered services, they are not deductible. You can, however, deduct the cost of any expenses incurred while volunteering ,supplies you purchased, for example or etc. however, donations of goods, services, or property are deductible on the corp’s return. There are limits to how much a corporation can donate to charity. The donation cannot be more than 10 %of the company’s annual taxable income.



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Old 09-02-2015, 12:25 PM
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Thank you!

Thank you. Our company is an S Corp in PA. State law requires donation to be at least published in some sort of way.



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Old 09-03-2015, 01:39 PM
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Originally Posted by albertn View Post
Thank you. Our company is an S Corp in PA. State law requires donation to be at least published in some sort of way.
As said, you cannot deduct your time working for a charitable organization, such as time spent serving on a corporate board.however, say, if you paid an employee $1K specifically to make a website template for a charity, gov agency r etc, then gave the template to the charity for free, you incurred a tangible expense - the $1K paid to the employee. And that, might be tax deductible



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Old 09-03-2015, 01:59 PM
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Non-Deductible Expense?

Thank you. Your response helps me to ask 2 more pointed questions.

1.) If an hourly employee of a corporation spends some of their work day doing work such as typing reports for the elected official's office, do I need to segregate this portion of this employees earnings as a non-deductible expense? For some hourly employees, this happens on a daily basis.

2.) If the corporation hires an employee to exclusively do work for the elected official's office, will all its earnings be non-deductible to the corporation?

Thank you again.
Albert



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