IRS Issues Employer Guidance for Reporting 2021 FFCRA Leave
Employers are required to report qualified 2021 FFCRA leave wages to employees on either a 2021 Form W-2, Box 14, or in a separate statement provided with the Form W-2.
Important Dates
- March 11, 2021 – American Rescue Plan Act extended tax credits for employers who voluntarily continue FFCRA leave.
- Sept. 7, 2021 – IRS issued Notice 2021-53 about employer reporting of 2021 FFCRA leave wages.
- Sept. 30, 2021 – American Rescue Plan Act’s tax credit
Employees may take leave Only employers claiming tax credits for FFCRA leave wages must comply with the reporting requirements.
Illinois Domestic Violence Leave to Cover All Victims of Violence
The Illinois legislature expanded the state law that allows employee leave for domestic violence victims.
- Victims of all violent crimes, as specified in the law, are now allowed unpaid leave from work, along with their family and household members.
- Required annual leave amounts range from four to 12 weeks, depending on employer size.
- Notice and certification rules apply.
Employees may take leave for medical treatment, recovery, counseling, victim services, and planning for safety and economic security.
EEOC Extends EEO-1 Deadline for 2019 and 2020 Data to Oct. 25
Oct. 25, 2021
New deadline for employers subject to EEO-1 reporting to submit 2019 and 2020 workforce data.
March 31, 2022
Deadline for submission of EEO-1 data from 2021.
OSHA Will Not Amend COVID-19 Healthcare ETS After CDC Reversed Face Mask Guidance
OSHA determined that neither the CDC’s guidance on health care settings nor the underlying science and data on COVID-19 in health care settings has materially changed in a way to necessitate changes in the June 10, 2021 ETS.
For more information:
Federal Workers and Contractors Must Attest to Vaccination Status
Every federal government employee and on-site contractor is now required to disclose their vaccination status. Federal employees and contractors who cannot attest to being fully vaccinated will be required to wear a mask while at work.
This new requirement applies regardless of whether employees are:
- In a location where COVID-19 cases are not surging (it does not matter where the employee is geographically located);
- Physically distancing from all other employees or visitors;
- Subject to restrictions on official travel; or
- Complying with weekly or twice weekly screening testing requirements.
Learn more:
PCORI Fees Due Aug 2, 2021
PCORI Fee Deadline
The PCORI fee payment for plan years ending in 2020 is due Aug. 2, 2021.
IRS Form 720
Issuers and plan sponsors must report and pay the PCORI fees annually on IRS Form 720 (Quarterly Federal Excise Tax Return). Issuers or plan sponsors that file Form 720 only to report the PCORI fee do not need to file Form 720 for the first, third or fourth quarter of the year.
For more information:
President Biden Issues Executive Order to Promote Competition in the American Economy
On July 9, 2021, President Joe Biden issued an executive order to promote competition in the American economy. As stated by the accompanying fact sheet, the order’s objectives include reducing the trend of corporate consolidation, increasing competition and delivering concrete benefits to America’s consumers, workers, farmers and small businesses.
Reducing Barriers to Competition
The order directs over a dozen federal agencies, including the Federal Trade Commission (FTC) to look into unfair competition practices, including, among other things:
• Restrictive covenant and non-compete agreements;
• Prescription drug prices;
• Internet billing and termination practices;
• Airline refunds and cost comparison practices;
• Facilitating the mobility of banking transaction data; and
• Increasing opportunities for small businesses by directing all federal agencies to promote greater competition through their procurement and spending decisions.
Next Steps
The order does not invalidate any of the practices and procedures mentioned above.
However, industry experts recommend that employers take time now to review, at the very minimum, their use of restrictive covenant agreements and evaluate how this order may impact their practices.
For more information:
Illinois Expands Sick Leave Act for Personal Care of Family Members
Workers may use their sick leave for relatives’ medical, hygiene, nutrition and safety needs, and for related transportation and emotional support.
IRS Issues Guidance on Taxability of DCAP Benefits for 2021, 2022
General Rules
- Carryovers of unused DCAP amounts typically are not permitted, although a 2½ month grace period is allowed.
- However, recent coronavirus-related relief allows employers to amend their plans to permit the carryover of unused DCAP amounts to plan years ending in 2021 and 2022, or to extend the permissible grace period to plan years over the same period.
IRS Issues Guidance on American Rescue Plan’s COBRA Subsidy
The COBRA Subsidy
The ARPA subsidy covers 100% of COBRA and state mini-COBRA premiums from April 1–Sept. 30, 2021, for certain assistance-eligible individuals whose work hours were reduced or whose employment was involuntarily terminated. The subsidy is funded via a tax credit provided to employers, insurers or group health plans, according to the terms of the statute.
The IRS Guidance
Among the topics covered by the 40-page Notice are how to calculate and claim the tax credit, including when a third-party payer is involved. According to the guidance, employers must document individuals’ eligibility for COBRA premium assistance in order to claim the credit.
Client and Employee Resources
The more your employees understand your benefit plans the more they become educated, empowered consumers. The programs you provide will also gain an enhanced value.
As your strategic partners in employee benefits, we can provide multiple avenues of ongoing support, including:
- Employee Meetings (English and Spanish)
- Webcasts
- Payroll Stuffers
- Poster Campaigns
- Newsletters
Carrier Directories
E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. Click the image below to begin.
