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11 <br /> <br />City of Little Canada Personnel Policy <br /> <br />Recipient: An employee is eligible to receive donated leave only for time lost from normal work hours <br />and only to make them financially whole once all paid leave banks have been exhausted. PTO <br />Donation Program wages shall be limited to the amount equal to that individual’s regular gross <br />earnings per pay period (i.e. current hourly base pay rate multiplied by regularly scheduled hours of <br />work per pay period). <br /> <br />Transfers of leave hours will be converted based on the donor’s hourly rate of pay versus that of the <br />donee. (i.e. an employee making $30 per hour donates eight hours of PTO to an employee that makes <br />$15 per hour. The value to the donee would be 16 hours). The IRS has ruled that these payments are <br />considered wages and taxable income for the recipient. <br /> <br />An employee may only have an excess of 40 hours of PTO on the books after application of the PTO <br />donations. <br /> <br />Donation of PTO will not be allowed once an employee is judged to be disabled by the major medical <br />condition and will not be returning to work. Donated time cannot be paid to an employee in the form <br />of cash or used in any manner other than what is stated in this policy. <br /> <br />Donor: An eligible employee who donates PTO time understands this time is a “gift” and that the <br />donated leave will be irrevocable, that there is no control over how the leave is used once donated, and <br />that the receiving employee has no obligation to pay it back. The IRS has ruled that the employee <br />donating the leave realizes no income and incurs no tax-deductible expense or loss, either upon <br />donation of PTO or payment to the recipient. An employee may donate up to eight (8) hours per year <br />to a single fellow employee. Once donated PTO time has been transferred to the eligible employee, the <br />donor may not revoke the transaction. <br /> <br />Exceptions <br /> <br />Exceptions to these requirements must be approved by the City Administrator and will only be granted <br />in rare and unusual circumstances. Any questions regarding this program should be directed to the City <br />Administrator.