The Medcom Cares Disaster Recovery Program is based on IRS Section 139: Disaster Relief Payments. Section 139 states that employers can provide "Qualified Disaster Relief Payments" to employees, tax-free, who are affected by a federally declared disaster. A qualified disaster relief payment means any amount paid to or for the benefit of an individual to reimburse or pay reasonable and necessary expenses listed as the result of a disaster.
Medcom Cares Basics
- Funds are made available by the employer to employees on a debit card
- The amounts provided are at the employer's discretion
- No substantiation is required
- No manual claims or reimbursements are accepted - the card is the only way to access the funds
- Employers can choose where employees spend their funds
- There are six merchant categories; employers can select them all or customize the list
- The program runs for 90 days
- Unused funds return to the employer
- All contributions are tax-free for the employee - no need to include on a W-2 or 1099