Ligeia Donis, partner in Baker McKenzie’s Tax Practice Group, recently authored an article in Law360 outlining several tax-free methods for employers to assist employees affected by the recent Los Angeles wildfires.
Ligeia wrote that employers can provide tax-free payments for necessary expenses under Section 139, establish leave-sharing programs and set up leave-based charitable donation programs. Private foundations and donor-advised funds can also make need-based distributions to employees without tax implications. Additionally, employers can create public charities to support disaster response and emergency hardship situations for employees. These measures help employers support their employees in rebuilding their lives after disaster.
Read the full article
here.
