Under Internal Revenue Code Section 139 – Disaster Payments allow employers to provide employees with tax-free payments for expenses such as:
- Over-the-counter medications, hand sanitizer, and home disinfectant supplies.
- Child care or tutoring due to school closings.
- Work-from-home expenses such as setting up a home office increased utility expenses and higher Internet costs.
- Increased commuting costs, such as taking a taxi instead of using public mass transit.
- Unreimbursed health-related expenses.
These payments can be deducted by the employer for tax purposes. The payments do not get reported on a W-2 or 1099. For more information give us a call.