The IRS recently issued FAQs regarding the temporary, 100% COBRA subsidy created by the American Rescue Plan Act of 2021 (“Rescue Plan Act”). This subsidy is available to “Assistance Eligible Individuals” for COBRA continuation coverage during the period April 1, 2021 through September 30, 2021. We previously covered developments relating to the COBRA subsidy in
Employee Benefits
Substantial Relief Provided to Employees with Unused Health Flexible Spending Accounts or Dependent Care Accounts Benefits under Recent Stimulus Bill
By Mark Williams & Timothy S. Klimpl on
Posted in Employee Benefits, Labor & Employment
Contained within the recent Stimulus Bill is the Taxpayer Certainty and Disaster Tax Relief Act of 2020. Section 214 of that Act provides flexibility for Health Flexible Spending Accounts (Health FSA) and Dependent Care Accounts (DCA).
Background
HFSAs and DCAs have certain limitations and restrictions known as the ‘use or lose’ rule, which generally provide…
Employee Benefits Cost-of-Living Adjustments for 2021
By Mark Williams & Timothy S. Klimpl on
Posted in Employee Benefits, Labor & Employment
The Internal Revenue Service (IRS) has announced that the amount employees may contribute to their 401(k) and 403(b) plans next year remains at $19,500. The IRS announced this week its inflation adjustments for 2021, including:
- Overall contribution limit for defined contribution plans increases from $57,000 to $58,000 (but see catch-up contributions below).
- Catch-up contributions for
…
ACA Employer Mandate Penalties
By Mark Williams on
Notwithstanding all the news about repeal and changes to the Affordable Care Act, we are aware that the Internal Revenue Service is enforcing current provisions and assessing penalties.
Enforcement of the 2015 Employer Mandate Penalty
The IRS has announced that it will assess employer mandate penalties for the 2015 tax year. Employers who had 100…