COVID-19: Special Disaster Benefits for Employees

Under current law and the proposed Coronavirus Aid, Relief, and Economic Security (CARES) Act, employers can offer a cluster of special benefits to employees in the event of a disaster such as the COVID-19 pandemic. Available disaster benefits discussed in our latest alert include:

• Tax-free emergency payments under Code section 139,
• Leave cashouts and leave sharing programs,
• Hardship withdrawals from 401(k) plans, and
• Loans from 401(k) plan accounts.