A business was destroyed by fire. Employees lost personal property, some business related and some not. The employer (apparently not insurance) is reimbursing the employees for their losses.
Is that taxable? Does the employer need to include that in a 1099 or W-2?
My thought is that it shouldn't be taxable. But it's apparently not coming from a "wrong-doer" or insurance. I haven't been able to easily find any authority on this point.
Any thoughts?
Thanks.