In light of recent federal disasters like Hurricane Beryl in Texas and the severe storms, flooding, landslides, and mudslides in West Virginia, it’s crucial for employers to have a solid plan in place to support their affected employees. Medcom’s Disaster Recovery Program, Medcom Cares, based on IRS Section 139: Disaster Relief Payments, offers a reliable and tax-efficient solution for employers in the wake of a federal disaster.

The Medcom Cares Program enables employers to provide “Qualified Disaster Relief Payments” to employees impacted by federally declared disasters. These payments are tax-free and designed to help cover reasonable and necessary expenses resulting from a disaster, ensuring your employees have the resources they need to recover and rebuild.

Key Features of Medcom Cares

Easy Access to Funds

• Employees receive funds on a debit card
• No substantiation or manual claims required

Employer Discretion

• Employers determine the amount provided to each employee
• Unused funds return to the employer after 90 days

Customizable Spending

• Employers can choose from six merchant categories where employees can spend their funds (includes Grocery & Rx, General Retail & Office Supplies, Education & Childcare, Healthcare, Clothing, and Utilities), or the list can be customized to fit specific needs

Tax-Free Benefits

• All contributions are tax-free for the employee
• No need to include these payments on W-2 or 1099 forms

The proposal and implementation process for the Medcom Cares service is simple. After a general consultation with the broker/partner/employer and the submission of a proposal, Medcom will set up the implementation meetings and complete the program set-up. Once Medcom receives the employer funds and payment for the administration fees, the cards will be mailed to the eligible participants. Typically, cards arrive within 7-10 business days.

Medcom Cares ensures employers can swiftly and efficiently support their employees during challenging times. The program’s design alleviates the financial burden on employees without adding tax complications for employers. Don’t let your employees face the aftermath of a disaster alone. With Medcom Cares, you can provide essential support when it’s needed most. Contact us today to learn more about implementing the Medcom Cares Disaster Recovery Program for your team.