Helping Employees During Los Angeles Wildfires
The wildfires ravaging various parts of Los Angeles County are truly tragic and expected to cost more than $50 billion in damages, making it the most expensive natural disaster ever in the United States. 1 For employers with employees in the impacted areas, there are several ways to help. First, an employer may provide disaster assistance payments under IRC section 139 on a tax-free basis: (1) to reimburse or pay reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a qualified disaster, (2) to reimburse or pay reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence or repair or replacement of its contents to the extent that the need for such repair, rehabilitation, or replacement is attributable to a qualified disaster, ... 2 Thus, employers can pay for hotel stays, money for food and clothing, or even to help repair homes damaged or destroyed by the fires. There is no l...