HCM Insights May 2021

Upcoming Holiday

Memorial Day

In observance of Memorial Day, CBIZ HCM offices will be closed on Monday, May 31, 2021. Memorial Day is a Federal Reserve Bank Holiday, which means payroll draft dates may need to be adjusted.

Important Payroll Deadlines

As always, your CBIZ HCM team is here to help should you have questions. We appreciate your continued partnership, and we wish you and your business the best of health. Please contact your payroll services team if you have any questions.

ARPA COBRA Premium Subsidy

On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA). Among other provisions, the ARPA provides a COBRA continuation of coverage premium subsidy to Assistance Eligible Individuals (AEIs) from April 1 - September 30, 2021. Employers have until May 31, 2021, to notify AEIs of the COBRA premium subsidy; and AEI's have  sixty days from the notice to elect the premium free COBRA coverage. Once the coverage is elected, employers will be required to pay the premium during the subsidy period but can recoup the premium cost through a payroll tax credit. 

CBIZ HCM has identified processes that allow for the adjustment of Federal Employment Tax liabilities based on the COBRA premiums paid as part of the ARPA COBRA Subsidy. Contact us for more information on how we can assist you with this process. 

ARPA Key Dates for COBRA Premium Subsidy

• April 1, 2021 – Subsidy effective date
• April 7, 2021 – US Department of Labor (DOL) provides model notice
• May 31, 2021 – Deadline to notify AEI of subsidy
• 60 days from notice – election period expires for the second election
• 45 days from the expiration of the period (September 30, 2021) – the US DOL provides model notice

Subsidy-Eligible Individuals are Those Who Meet ALL of the Following Criteria:

• Any qualified beneficiary who experienced a reduction in hours or involuntary termination of employment
• Has at least one medical, dental, vision, EAP, or HRA plan (not including health FSA or QSEHRA)
• Has a Last Day of Coverage of April 1, 2021, or later
• The individual must not be eligible for other group health coverage

EEO-1 Component 1 Data Collection Now Open

Because of the COVID-19 public health emergency, the Equal Employment Opportunity Commission (EEOC) paused the opening of 2019 EEO-1 Component 1 data collection in 2020. As announced by the EEOC on April 26, 2021, the data collection period is now open and the deadline for employers to submit 2019 and 2020 EEO-1 Component 1 data is July 19, 2021. 

Eligible employers who have not received a 2019 and 2020 EEO-1 Component 1 notification letter should contact the EEOC’s Filer Support Team for assistance. Employers that have received the notification letter may create user accounts using the Company ID and Passcode provided in the notification letter.  

The EEOC offers two filing options:

• Online Form  -  Filers may enter their data into a secure online form via the EEO-1 Component 1 Online Filing System.
• Data File Upload - Beginning Wednesday, May 26, 2021, filers may upload data files through the EEO-1 Component 1 Online Filing System. The format of the uploaded data files must follow the file layout outlined in the EEOC-approved specifications available beginning Wednesday, May 26, 2021.

All private-sector employers with 100 or more employees, and federal contractors with 50 or more employees meeting certain criteria, must submit demographic workforce data, including data by race/ethnicity, sex, and job categories. The filing by eligible employers of the EEO-1 Component 1 Report is required under section 709(c) of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e-8(c), and 29 CFR 1602.7-.14 and 41 CFR 60-1.7(a)

Financial Wellness Tools For Your Employees 

For a variety of reasons, financial freedom is something that many of us want to achieve. But getting there is a challenge, and it requires hard work and time. According to a recent report released by the Pew Research Center, about half of all adults who are not retired say the pandemic has made it harder for them to reach their financial goals. Plus, forty percent of Americans say they have taken a pay cut, been laid off, or live with someone who has.

The COVID-19 pandemic has taken a significant financial and physical toll on many employees. Because of this, many employers have become more attuned to the challenges facing their workforce and responded by providing helpful resources. Workplace initiatives focused on both the physical and financial health of employees are becoming more common. With that in mind, CBIZ continues to provide employers with resources that can help employees navigate the road to financial wellness.

We've put together some fundamental steps that individuals can take, even during this pandemic, to start on the journey to financial freedom. Topics include setting financial priorities, developing a budget, and decreasing debt, to name a few. Whether you currently have a financial wellness program or are looking to start one, we encourage you to download the 6 Key Actions To Achieve Financial Freedom guide and share it with your employees.

CBIZ Releases First-Quarter Results

CBIZ Inc. (NYSE: CBZ) recently announced financial results for first-quarter 2021 and a 2021 forward-looking outlook. For the 2021 first quarter, CBIZ recorded revenue of $300.7 million, an increase of $23.2 million, or 8.4%, over the $277.5 million reported in the same period in 2020. Jerry Grisko, CBIZ President and Chief Executive Officer, said, "Our business experienced strong performance through the first quarter of 2021, and we are pleased to announce ongoing growth in total revenue, same-unit revenue, earnings per share, and adjusted EBITDA over the same period last year."

Grisko continued, "In addition to the momentum resulting from our first-quarter performance, I am also pleased to announce the acquisition of the non-attest assets and business of Berntson Porter, a leading provider of accounting and related professional services located in Bellevue, Washington. Berntson Porter's outstanding reputation for exceptional client service, commitment to the growth and development of their team members, and service to the communities where they work and live align with CBIZ's core values and beliefs."

Fiscal Unemployment Insurance Rates

Fiscal Unemployment Insurance (UI) rates are set to be released by state unemployment tax agencies in New Jersey, New Hampshire, Tennessee, and Vermont. We request that you forward this information to the CBIZ Tax Department via email, fax, or regular mail service. 

Contact Information

Email
[email protected]

Fax
540-343-5279

Mailing Address
2797 Frontage Road NW
Suite 2000
Roanoke, VA 24017

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The information contained in this HCM Insights is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.