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On Wednesday, May 20, 2020, Jeff Beemer and I conducted a webinar of the same title as this blog, which you can register to access here. In that webinar, we discussed the top concerns employers face as they seek to re-open their businesses under the relaxed stay-at-home orders and re-up their workforces. This blog will …
Continue reading “What Employers Can Expect When Re-Opening Amidst COVID-19”
In Notice 2020-29, the IRS gave plan sponsors additional flexibility to allow participants to make certain mid-year cafeteria plan election changes during calendar year 2020 without regard to the restrictions that typically apply, and to adopt an extended claims period for flexible spending accounts (“FSAs”). In Notice 2020-33, the IRS has increased the $500 carryover …
The DOL and IRS recently issued final regulations (the “Final Rule“) that extend notice and premium payment periods for participants and plans under COBRA. Specifically, a group health plan must disregard the period from March 1, 2020 through 60 days after the announced end of the COVID-19 national emergency (the “Outbreak Period”) in determining, among …
Continue reading “Benefits Briefs in the Time of COVID-19, Part 8: COBRA Complications”
The COVID-19 pandemic has employers strategizing on how to retain valuable employees while addressing declines in demand for the company’s products or services. Some employers have placed employees on unpaid leave status instead of terminating the employee’s service. Employers may call this unpaid leave a layoff or a furlough. This benefits brief describes how the …
Section 125 cafeteria plan elections are irrevocable for the plan year unless the participant experiences a change in status or other event that allows an election change under the Section 125 regulations. Common status change events that may be occurring due to the pandemic include the following: A commencement of an unpaid leave of absence. …
As businesses across the country adjust to the financial reality of Coronavirus related shutdowns and restrictions, some employers that sponsor safe harbor formula 401(k) plans are revisiting a money saving strategy last implemented on a wide scale basis over a decade ago during the great recession—the suspension or reduction of safe harbor contributions. Under a …
Employers confronting business interruptions and shut-downs in the wake of the first COVID-19 wave face challenging workforce decisions about whether they need to lay-off or terminate workers. Employers having a workforce partially comprised of temporary foreign workers (i.e., workers holding work visas such as H-1B, L-1, E-1/2, E-3, TN, O-1, etc.) confront additional layers of …
Continue reading “COVID-19: Unemployment Benefits for Temporary Foreign Workers”
Congress has reversed course and amended the Internal Revenue Code (“Code”) to provide that a health flexible spending account (“health FSA”), health savings account (“HSA”) and health reimbursement account (“HRA”) may reimburse employees for over-the-counter medications, effective January 1, 2020. Background For many years, health FSAs, HSAs and HRAs did not consider a non-prescription drug …