Section 139 and SpeedLift Care Card
The COVID-19 pandemic is creating entirely new challenges for employers & employees, including unexpected financial burdens, work requirements, and changes in routine. Disaster relief payments under IRS Section 139 was originally created after 9/11/2001.
COVID-19 falls under this federal disaster category, which allows employers to offer tax free funds and offer financial assistance to their employees through 12/31/2020 (subject to further government action). All expenses need to be for necessary family, personal, or living expense incurred as a result of the COVID-19 disaster. Some items are not eligible under the IRS Section 139 including any items that are covered by insurance, sick and family leave.
Chard Snyder is offering new solutions to help employers and employees navigate these difficult times to include: expenses in the following areas:
- Medical
- Childcare
- Transit
- Work from Home
- Lifestyle Wellness
- Emergency Leave
Medical, Childcare, Transit
As part of the solutions available to employers, there is a new medical, childcare, and transit accounts to cover those expenses incurred as a result of the COVID-19 pandemic. If an employer chooses to offer these accounts, employees can continue to use their Chard Snyder benefits card. And, claims can be submitted for reimbursement via our employee portal or mobile app.
Working from Home, Wellness Lifestyle, Emergency Leave
The SpeedLift Care Card, a highly elastic, quick-implementation benefits product will cover expenses incurred from working from home, lifestyle wellness, and emergency leave incurred as a result of the COVID-19 pandemic. It’s a new card-based program that is 100% prefunded by the employer for employees to get financial assistance. Employees easily access their funds in the form of a convenient debit card, the SpeedLift care card, supported by a simple, online experience.
Why is it called “SpeedLift” Care Card?
Our technology partner branded all things COVID-19-related to be called “SpeedLift.”
Important Points for the Employee
- All expenses need to be for necessary family, personal, or living expense incurred as a result of the COVID-19 disaster.
- It can be used for groceries, utilities, gas, cleaning/sanitizing products, work from home expenses such as computer equipment or office supplies, etc. (See the SpeedLift Merchant codes for a list of stores that will be allowed.)
- Employees easily access their funds in the form of a convenient debit card, supported by a simple, online experience using the same SSA login as they normally use.
- Substantiation is not required under Section 139. However, it is encouraged for employees to maintain receipts and adequate records of Section 139 related expenses.
- There are no requirements for an employee to reach a certain period of employment in order to receive tax-free payments.
Important Points for Employer
- Employer prefunds participant accounts 100%.
- Speak with your Client Relationship Manager to find out if you need any updates to your Plan Document or Service agreement.
- Standard file layouts are required for ease of use.
- While all claims will be auto-substantiated, it is encouraged for the employer to maintain adequate records to substantiate any deduction taken.
Benefits for the Employer
This program is designed to give the employer flexibility and control over how dollars are spent.
- Funding flexibility. Employers pre-fund participant accounts with predefined employer amounts (e.g. families get $1,000, singles get $500), allowing quick availability
- Employer can get any unused funds back.
- Easily add more contributions. Should the COVID-19 crisis become prolonged, employers can easily add more dollars to the card.
- Real-time expense tracking. Gain a real-time view into where and how employees are spending their care dollars.
- Tax exempt and fully deductible accounts.
If you're interested in learning more about our Section 139 solutions, please contact your Client Relationship Manager or Regional Vice President.