Mobility Matters

When disaster strikes: Are you ready to support your workforce?

The stakes have never been higher. Geopolitical instability and the increasing frequency and severity of natural disasters have heightened the need for employers to respond quickly and thoughtfully to employee hardship. From federally declared natural disasters—including hurricanes, wildfires, and severe storms across the U.S.—to conflict-related events affecting globally mobile employees and their families in Israel and the broader Middle East, multinational employers are confronting a wide range of events that directly impact their workforces both at home and abroad.

Yet many organizations still lack a clear, tax-efficient framework for responding under U.S. federal income tax rules. The consequences of inaction—or missteps—can be significant: employees left without support, and employers exposed to compliance risk.

In this issue of Mobility Matters, KPMG Washington National Tax professionals Stephen Tackney, Christine Deveney, and Carly Rhodes answer employers’ most pressing questions on disaster-related employee assistance, including:

• Structuring qualified disaster relief payments that are tax-free to employees and exempt from federal withholding and FICA
• Leveraging working condition fringe benefits to maintain employee productivity after a disaster
• Unlocking retirement plan provisions for special distributions and hardship withdrawals to help employees cope with disaster-related expenses
• Designing pension-linked emergency savings accounts (PLESAs) as an accessible safety net for unexpected employee financial hardship
•  Implementing indirect assistance mechanisms, including leave-sharing, employee-to-employee support, and charitable programs