Ep 86 ~ Benevolence and Employees

Summary

Direct Employer Payments: Benevolence funds provided directly
by an employer to an employee are generally included in the
employee's gross income under Section 102(c).

Qualified Disaster Relief Payments: Payments made by an
employer to employees for disaster-related expenses can be
excluded from gross income under Section 139 if they meet the
criteria for qualified disaster relief payments.

Documentation: Employers must ensure that payments are
commensurate with the expenses incurred and maintain adequate
records to support the exclusion from gross income.



In conclusion, while benevolence funds provided by an employer
are typically taxable, exceptions exist under Section 139 for
qualified disaster relief payments, provided specific criteria
and documentation requirements are met.
xo, Michelle Next Steps: 

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