Sick Leave Direct Donation 3 minutes February 2016

Sick LEAVE DIRECT Donation Authorized by HB 1771 Does not impact Sick Leave Pool Eligibility requirements must be met Two step process to determine tax consequences Donated leave to be used in same manner as sick leave

Sick LEAVE DIRECT Donation Eligibility Requirements Donor and Recipient are in the same agency (Texas A&M System Member); Recipient has exhausted all of their sick leave accruals; Recipient has exhausted any previously donated hours they received; and Recipient has exhausted the full allocation of hours from the sick leave pool

Sick LEAVE DIRECT Donation Can You have a vacation leave balance? Can You Have a Sick Leave Balance? Can You have a sick leave pool balance? Can you have a Donated Sick Leave balance? Do you need to be out more than 160 hours? YES NO NO NO MAYBE

Sick LEAVE DIRECT Donation Operates Like Sick Leave Except Cannot be paid out to estate Does not transfer with the employee Cannot be returned to the donor Cannot be donated to sick leave pool Cannot be used for TRS service credit purchase Because of these considerations, recommended that donations be made in moderate increments.

Donor Recipient Two-Step Process Determine eligibility for donation Designate if donation is tax contingent Completed the Donor Form Donor Determine eligibility to receive Determine medical emergency for tax considerations Completes the Recipient Form Recipient

Sick Leave Direct Donation Taxable Sick Leave Direct Donation Two New Leave Types Sick Leave Direct Donation Taxable Does not meet medical emergency criteria Taxable to donor May be used for ANY reason sick leave would be approved Sick Leave Direct Donation Meets medical emergency criteria and must be medically certified Can ONLY be used for condition/circumstance that is medically certified

Texas A&M University Human Resources Leave Policies and Procedures

4/3/2014 Contact Information Sarah Tobola Assistant Director – Benefit Services 979-862-4956 S-tobola@tamu.edu Benefit Services 979-862-1718 benefits@tamu.edu Employees.tamu.edu