State of Emergency Workers

Eh, you're gonna have to do some digging, Id venture to guess theres more to it than just what he told you....does he have any link or cite that he can provide for more info on this exclusion?

Works for whom? Repairs what? You can't just drive into a hurricane and declare yourself tax exempt.

I think whoever told him that is confused.

There is a provision that an employer can give employees tax-free disaster 'relief' payments if the employees are affected by a disaster.  But that is completely separate from paying wages for work performed.

If company or organization or state determines that your pay is non-taxable due to working in a state of emergency area, then that amounts should not even be included on W-2.  This much like combat zone pay.  It is not on W-2 to begin with.  Therefore there is nothing for you to do to make it non-taxable.

I am not familiar with what those emergency workers are referring to.  But it could be a state exemption for certain states that you are speaking of.

Ask client to provide the specific source of the information from whomever told his this.  Like an IRS code or other document that addresses this.

i.e. skateboard rental companies rent out skateboards but they may be illegal for use, by law, in certain areas and client would be subject to a ticket...but the rental company doesn't tell their customer any of that.

Listen but, verify. Never just believe what you are told.

I'm not sure  where or how to report it, The Internal Revenue Code provides an exception under IRC 3121(b)(6)(C) from social security and Medicare tax for a worker “serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar emergency.” This exception applies only for temporary workers hired in response to an unforeseen emergency. It does not apply to firefighters who work on a recurring, routine or regular basis, even if their work involves situations that may be considered emergencies, including responding to fires.

I am  authority on fire ball whiskey.

In my opinion who ever told your client that or perhaps the client them self has been consuming a little too much of my favorite drink.