Employers Can Make Tax-Free Payments to Employees Under IRS Section 139 During COVID-19 Pandemic

On March 13, 2020, COVID-19 was designated a disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. As a result, employers are permitted to make tax-free reimbursements and payments to employees under Internal Revenue Code Section 139. This Alert will outline the rules governing these reimbursements and considerations that employers must take into account when implementing such a program.

To read the full text of this Duane Morris Alert, please visit the firm website.

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