Senate would defer taxes on volunteer firefighter award programs
The minimum wage legislation (H.R. 3448, S.1232) approved by the Senate in July includes also a provision that would defer tax payment on most volunteer firefighter length-of-service award programs (LOSAPs), according to the National Volunteer Fire Council. At press time, the House and Senate versions of the bill were to be reconciled before going to President Clinton for his signature.
The LOSAP provision, added to the minimum wage bill in committee by Sen. Alfonse D`Amato (R-NY), would defer taxation on the LOSAP until the awards are actually paid. The legislation caps the deferral or contribution for each year of service at $3,000. According to the NVFC, the cap will affect very few LOSAPs, since most are well below the $3,000 limit.
These nominal awards are offered as a retention and recruitment incentive by many volunteer fire and EMS departments. For information on this provision, contact the NVFC at 1-888-ASK-NVFC.
