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Tax help for military filers
Disability pay made to you by the VA is not taxable or reportable on any tax return, and never has been. That's why you don't receive any type of tax reporting document from the VA for that income. It would seem apparent to me that the employer is not aware of this. See this IRS website at https://www.irs.gov/individuals/information-for-veterans paying specfic attention to the paragraph that starts with "VA Disability Benefits" (about halfway down the page).
If necessary, refer the employer to that "OFFICIAL" IRS website.
Now I'm not sure how your letter from the VA reads for a 100% disability, as I have only a 10% disability and my letter specifically and explicitely states the income is not reportable on the federal tax return, but it may be included for the "sole and only purpose" of determining my deduction for sales taxes paid. My disability pay does not increase my AGI under any circumstances.