Employee Crisis Fund Account
The Federal Reserve has reported that 40 percent of American families do not have sufficient savings to deal with a $400 emergency expense. Let BASIC help you provide for your employees in need.
The Disaster Relief Payment program under Section 139 allows employers to provide tax-advantaged funds to employees impacted by a qualified disaster. Employees receive the funds pretax and it is tax-deductible for employers. Reimbursable expenses related to COVID-19 include expenditures for childcare and tutoring services, costs associated with setting up or maintaining a home office, and medical expenses not covered by insurance.
Employers can also gift post-tax funds to employees struck by any number of financial hardships resulting from a sudden, severe, overwhelming, and unexpected event that is beyond their control.