Are Qualified Wages Excluded From Gross Income As “Qualified Disaster Relief Payments”?

Question #59:
Are qualified wages excluded from gross income as “qualified disaster relief payments”?

Found under the K. Special Issues for Employees: Income and Deduction section of the Employee Retention Credit (ERC) IRS Notice 2021-20 with updated guidance to help business owners follow the current ERC rules.

The answer to question #59, Are qualified wages excluded from gross income as “qualified disaster relief payments”?, can be found below.

Table of Contents

ERC IRS Notice 2021-20 Question #59:

K. Special Issues for Employees: Income and Deduction

No. Section 139 of the Code excludes from a taxpayer’s gross income certain payments to individuals to reimburse or pay for expenses incurred as a result of a qualified disaster (qualified disaster relief payments). Although the COVID- 19 pandemic is a “qualified disaster” for purposes of section 139, qualified wages are not excludable qualified disaster relief payments, because qualified wages are what an individual would otherwise earn as compensation, rather than payment or reimbursement of expenses incurred as a result of a qualified disaster. Therefore, qualified disaster relief payments do not include qualified wages paid by an employer, including those that are paid when an employee is not providing services.

For more information about the Employee Retention Credit (ERC) IRS Notice 2021-20, visit the Internal Revenue Service (IRS) Department of the Treasury, official IRS.gov tax website.

Conclusion and Summary on Are qualified wages excluded from gross income as “qualified disaster relief payments”? – #59 ERC IRS Notice 2021-20

The answer to Question #59: “Are qualified wages excluded from gross income as “qualified disaster relief payments”?” was answered in detail above. It was found under section K. Special Issues for Employees: Income and Deduction” in IRS Notice 2021-20.

Leave a comment below if you have further questions on the Employee Retention Credit (ERC) or for clarifications on Are qualified wages excluded from gross income as “qualified disaster relief payments”?

Employee Retention Tax Credit (ERTC): Expert Assistance to Claim Your Business ERC Credit

Up to a $26,000 ERC Refund from the IRS for Each Employee

Disaster Loan Advisors can assist your business with the complex and confusing Employee Retention Credit (ERC), Form 941-X, and the Employee Retention Tax Credit (ERTC) program.

Depending on eligibility, business owners and companies can receive up to $26,000 per employee based on the number of W2 employees you had on the payroll in 2020 and 2021.

The ERC / ERTC Tax Credit Program is a valuable IRS tax credit you can claim. This is money you have already paid to the IRS in payroll taxes for your W2 employees.

We DO NOT charge a percentage (%) of your ERC Refund like some companies are charging. Some ERC firms out there are charging upwards of 15% to 35% of your ERC refund!

Our professional ERC fee and pricing structure is very reasonable in comparison.

If you are looking for an ERC Company that believes in providing professional ERC Services and value, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors is a good fit for you.

Schedule Your Free Employee Retention Credit Consultation to see what amount of employee retention tax credit your company qualifies for.

Cover Image Credit: Irs.gov / IRS Notice 2021-20 / Disaster Loan Advisors.

About
Latest Posts

Mark Monroe

Senior Advisor, Employee Retention Tax Credit (ERC / ERTC) Division at Disaster Loan Advisors™

Mark Monroe is one of the distinguished Senior Advisors of the Employee Retention Tax Credit (ERC / ERTC) Division at Disaster Loan Advisors™, bringing deep expertise and a proven track record in helping businesses safely navigate and maximize benefits from the ERC Tax Credit, for those businesses that do qualify. His role involves a sophisticated understanding of the tax credit’s legislative framework and the updated changes of intricacies involved in securing these critical financial advantages for companies affected by past tax year economic challenges.

As a leading dedicated member of the Tax and Accounting Team at Disaster Loan Advisors™, Mark focuses on unlocking the ERC Tax Credit's potential for eligible firms that qualify, providing strategic advice, and detailed guidance to ensure substantial financial recovery and growth. His methodical approach to client engagement includes comprehensive deep-dive analysis, customized consultation and guidance, and a commitment to achieving tangible results for each business served.

Disaster Loan Advisors™ (DLA) offers a comprehensive suite of services designed to navigate the complexities of the Employee Retention Tax Credit (ERC) program, ensuring that qualified businesses leverage the maximum possible benefit with minimum hassle. Unlike some firms that charge exorbitant contingency or percentage-based fees (often between 10% to 30% of your ERC refund), DLA operates on a fair and reasonable, transparent flat-fee structure that aligns with the IRS's guidelines.

If you are looking for an ERC Company that believes in providing professional ERC Services and value for small business owners, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors™ is a good fit for you. STAY SAFE. STAY COMPLIANT. KEEP MORE OF YOUR REFUND.™

Employee Retention Tax Credit ERC, ERTC, IRS + SBA News

Are Qualified Wages Excluded From Gross Income As “Qualified Disaster Relief Payments”? – #59 ERC IRS Notice 2021-20

ERC IRS Notice 2021-20 Question #59:

K. Special Issues for Employees: Income and Deduction