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November 5, 2020

November Employer Regulatory and Legislative Update | CBIZ, Inc.

As businesses are increasingly focused on reopening and rebuilding, it’s important to also stay on top of non-COVID-related regulatory and legislative matters to ensure continued compliance. This update covers issues involving 2021 Benefit Plan Limits, Cost of Living Adjustments, Social Security, DOL Enforcement Efforts, mental health parity compliance tools and more. 

 

2021 Benefit Plan Limits | Learn More

The IRS released several 2021 cost of living adjustments for various aspects of benefits including the flexible medical spending account cap, transportation and adoption assistance benefits, Archer MSA limits, long term care premium, the small business tax credit and small employer health reimbursement arrangements, and the premium tax credit for coverage under a qualified health plan.

2021 Cost of Living Adjustments – Pension and Retirement Plans | Learn More

Certain contribution and income limitations applicable to defined benefit and defined contribution plans are subject to indexing. The IRS has released various 2021 cost of living adjustments for several of these plans.

2021 Social Security Cost-of-Living Adjustment | Learn More

The Social Security Administration announced a 1.3% inflationary adjustment applicable to the maximum amount of earnings subject to the Social Security tax for 2021.

COVID Turmoil for Account-based Plans | Learn More

Many types of account-based plans have been negatively impacted by the COVID turmoil. Given the changed landscape of employment, many participants have not been able to use amounts from their account-based plans, such as a medical flexible spending account, dependent care spending account, or qualified transportation account. Two recent IRS Information letters address these situations.

DOL Continues Enforcement Efforts | Learn More

The Department of Labor’s Employee Benefit Security Administration enforces compliance with laws governing private sector retirement and welfare benefit plans. The agency recently published its enforcement actions accomplished in fiscal year 2020. As an example of its enforcement action, EBSA provides a good reminder about proper handling of participant contributions and how essential it is to ensure that participant contributions are used for the exclusive purpose for which they are withheld.

DOL Continues Enforcement Efforts | Learn More

The Department of Labor’s Employee Benefit Security Administration enforces compliance with laws governing private sector retirement and welfare benefit plans. The agency recently published its enforcement actions accomplished in fiscal year 2020. As an example of its enforcement action, EBSA provides a good reminder about proper handling of participant contributions and how essential it is to ensure that participant contributions are used for the exclusive purpose for which they are withheld.

Updated Mental Health Parity Compliance Tool | Learn More

To assist health insurers, third party administrators, plan sponsors and employers in their compliance with the federal mental health parity laws, the tri-governing agencies (Departments of Labor, Health and Human Services and Treasury) continue to provide tools and guidance.  In its bi-annual obligation to provide a compliance tool, the DOL released a revised version of a Compliance Tool.  Plans sponsors are encouraged to review the Tool to ensure that their group health plan is in compliance with the law.

Maine: Rules Issued to Implement PTO Law | Learn More

The state of Maine enacted a broad paid personal leave law last spring, which takes effect January 1, 2021.  To implement the provisions of this law, the state’s Department of Labor recently issued final rules.  With the fast-approaching effective date, employers impacted by this law are encouraged to review their obligations to ensure compliance with the law. 

New York City Updates Earned Sick Leave Poster | Learn More

The New York City’s Earned Safe and Sick Time Act (ESSTA) was amended in September to align the law with the state’s paid sick leave law.  As a result of these changes, affected employers are required to provide an updated notice of ESSTA rights to their employees by January 1, 2021.  To satisfy this requirement, the City’s enforcement agency released an updated model notice that can be used by impacted employers.

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