Jul 8, 2021 IRS Announces New Guidance for Section 125 Cafeteria Plans and Related High Deductible Health Plans, and ICHRAs
May 27, 2021 New IRS Guidance Addresses ARPA COBRA Subsidies and Tax Credits On May 18, 2021, the IRS published Notice 2021-31 (the “notice”), providing guidance and clarification on the premium assistance and tax credits available for COBRA and state continuation health coverage per the American Rescue Plan Act of 2021 (ARPA). In addition to a summary overview, the notice provides clarification on many issues regarding administering the premium assistance and tax credits, via 86 questions and answers.
May 16, 2021 IRS Provides Guidance on Relief from Penalty for Failure to Deposit Employment Taxes On May 10, 2021, the IRS published Notice 2021-24, Relief from Penalty for Failure to Deposit Employment Taxes. The IRC imposes penalties upon employers who fail to timely deposit employment taxes with the IRS. Previous guidance provided relief from those penalties when it came to tax credits allowed under the FFCRA, among other credits. The new guidance extends that relief and includes relief to tax credits allowed under the American Rescue Plan Act (ARPA).
Apr 29, 2021 IRS Publishes Fact Sheet Regarding Tax Credits for Paid Leave taken for COVID-19 Vaccination On April 21, 2021, the IRS released a fact sheet that provides details concerning the tax credits permitted by the American Rescue Plan Act of 2021 (ARPA) when paid leave is provided for reasons relating to receiving the COVID-19 vaccine.
Apr 15, 2021 Congressional Research Service Issues Report Regarding Payroll Tax Credit for COVID-19 Sick and Family Leave On April 1, 2021, the Congressional Research Service (CRS) updated its Payroll Tax Credit for COVID-19 Sick and Family Leave report, providing details regarding the payroll tax credits associated with the extended paid leave originally provided by the Families First Coronavirus Response Act (FFCRA) available through the American Relief Plan Act of 2021 (ARPA).
Apr 1, 2021 IRS Announces New COVID-19-Related Guidance for Section 125 Cafeteria Plans and Related High Deductible Health Plans, and ICHRAs On May 12, 2020, the IRS issued Notices 2020-29 and 2020-33, which provides guidance for Section 125 plans for calendar year 2020 and related HDHPs, as well as ICHRAs. Together, the two notices relax the rules relating to election changes for health plans offered under a section 125 plan, including health and dependent care FSAs.
Mar 18, 2021 Congress Passes the American Rescue Plan Act of 2021 On March 10, 2021, Congress passed the American Rescue Plan Act of 2021 (ARPA). The ARPA includes over $1.9 trillion in COVID-19 relief and contains important updates to certain benefits laws to help employees who have been affected by the pandemic. We will address some of the major benefits-related provisions below.