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using donated leave. Recipients shall be entitled to retain eight (8) hours of donated <br />leave upon return to work. <br />15. Donated vacation/sick leave /compensatory time cannot be used for severance pay, <br />deposited into a sick leave bank, paid out to an employee in the form of cash, or used <br />in any other manner other than what is stated in this section of the policy. <br />16. Under a similar program, the IRS has ruled that these payments are to be considered <br />wages, and therefore taxable income to the recipient. As a result, the payments will be <br />included in the annual Form W -2 prepared for the recipient and State and Federal <br />income tax and FICA/Medicare tax and Supplemental Retirement contributions, <br />depending on the eligibility of the recipient, will be withheld by the City at the time <br />of payment. The IRS has also ruled that the employee surrendering the leave realizes <br />no income and incurs no tax deductible expense or loss, either upon surrender of <br />leave or payment to the recipient. <br />PROGRAM EXCEPTIONS: <br />Exceptions to these requirements will be approved by the City Administrator in rare and <br />unusual circumstances. The City Administrator shall have the right to deny use of donated <br />leave or limit its use, if it is determined to be in the best interest of the City. <br />PROGRAM PARAMETERS <br />As with any City policy, the City reserves the right to modify or discontinue this policy at <br />any time, with or without notice to the employees of the City of Lino Lakes. This program <br />will not be considered or construed as an earned benefit or right of any employee of the <br />City and will be administered as an optional relief in circumstances clearly beneficial to the <br />City. No employee will be guaranteed access to donated leave and any employee may be <br />denied access based on the administrative discretion of the City of Lino Lakes. <br />CONFIDENTIALITY <br />All information provided in leave donation request applications, leave donation forms, <br />verification of medical conditions, and additional related information is confidential. <br />7 <br />