In the wake of the catastrophic flooding caused by Hurricane Harvey, there are several steps that employers can take to help their impacted employees. To assist employers, the Internal Revenue Service (“IRS”), the Department of Labor (“DOL”) and the Pension Benefit Guaranty Corporation (“PBGC”) have each issued guidance on relief in response to Hurricane Harvey.
Tax-Free Disaster Assistance to Employees
Section 139 of the Internal Revenue Code (“Code”) allows an employer (or other entities) to provide tax-free disaster relief to its employees in those instances where the payments constitute qualified disaster relief payments. Continue reading “Government Agencies Stepping up in Light of Hurricanes”