
Section 139 Qualified Disaster Relief Payments: How Employers Can Help Employees Tax-Free
Section 139 lets employers reimburse employees' unreimbursed disaster expenses with no income tax, no FICA/FUTA, and no W-2 reporting — while keeping the deduction. Covers what qualifies, what doesn't (lost wages, insured costs), the minimal documentation needed, and how to book payments outside payroll.









