HCM Insights November 2020

HCM Insights November 2020

Upcoming Holidays

Happy Thanksgiving


In observance of the Thanksgiving Holiday, CBIZ HCM offices will be closed on Thursday, November 26, 2020, and Friday, November 27, 2020. Also, Thursday, November 26, 2020, is a Federal Reserve Bank Holiday, which means payroll draft dates may need to be adjusted.  

Important Payroll Deadlines

Check Date

Check Processing Date

Friday, November 27, 2020           

Tuesday, November 24, 2020

Monday, November 30, 2020

Wednesday, November 25, 2020


Happy Holidays

Christmas & New Year's Day

In observance of the upcoming holidays, CBIZ HCM offices will be closed on Thursday, December 24, 2020, and Friday, December 25, 2020, as well as Friday, January 1, 2021. Please keep in mind that December 25, 2020, and January 1, 2021, are Federal Reserve Bank Holidays, which means that payroll draft dates may need to be adjusted.

Important Payroll Deadlines

Check Date

Check Processing Date

Monday, December 28, 2020       

Wednesday, December 23, 2020

Tuesday, December 29, 2020

Wednesday, December 23, 2020

Monday, January 4, 2021

Wednesday, December 30, 2020

Tuesday, January 5, 2021

Thursday, December 31, 2020

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.




Clarity on PPP Loan Forgiveness Application Deadline 

Recent guidance from the Small Business Administration (SBA) clarifies that Paycheck Protection Program (PPP) loan forgiveness applications would not be due by October 31 as early forgiveness application forms had previously indicated. The timing of forgiveness applications is critical because the SBA measures the organization’s employee headcount to evaluate forgiveness on the application date.

Originally, the loan forgiveness application forms indicated there was an expiration date of October 31, 2020, but in a recent addition to the SBA’s frequently asked questions document, it clarified that borrowers may submit a loan forgiveness application any time before the maturity date of the loan.

The PPP loans generally have a two or five-year maturity date from origination based on loan structure. Loan payments are still deferred only until 10 months after the last day of the loan forgiveness covered period, however, so applicants are encouraged to apply for forgiveness much earlier than the maturity date. Unforgiven portions of the loans will accrue interest at 1% and may also be subject to tax restrictions.




Year-End Checklist

In the craze of year-end, it can be easy to overlook HR processes. We will have more details coming your way soon. But to help you get started, we put together this year-end checklist for you to consider.

  • Verify the employer data, such as the company address that is used in processing your quarterly tax reports. 
  • Review the employee data for accuracy and completion: address, state and local tax setups, and social security numbers.
  • Determine amounts to be reported and tax to be withheld for employee taxable fringe benefits, and submit before the last processing of the year.
  • Audit third-party sick payments made to your employees in 2020 and record in the payroll system before the end of the year.
  • Verify the 2021 processing calendar is accurate and schedule any bonus payments for the remainder of 2020.
  • Request any special reports needed for year-end.
  • Remind employees to complete a new W-4, if necessary. 
  • Confirm that all “manual” checks written during the year and any voided paychecks have been recorded in the system.
  • Submit your 2021 employer’s state unemployment tax rate once received.




2021 Retirement Limits & Social Security Adjustments


Tax Rates

The Internal Revenue Service recently announced information on defined benefit and defined contribution plan limits for 2021. Additionally, the Social Security Administration recently announced a Social Security wage base adjustment for 2021.

On October 26, 2020, the IRS released the 2021 cost of living adjustments (IRS Notice 2020-79) applicable to defined benefit and defined contribution plans (highlights below). The majority of these limits remain unchanged from 2020.

   2021  2020

  Elective deferral limit for purposes of cash or deferred
  arrangements [401(k) plans] and tax-sheltered
  annuities [403(b) plans]

 $19,500       $19,500     
  Maximum deferral limit for 457 plans   $19,500   $19,500

  >Age 50 catch-up contribution limit to 401(k),
  403(b) or 457(b) plans 

 $6,500  $6,500
  Maximum deferral limit for SIMPLE plans   $13,500  $13,500
  >Age 50 catch-up contribution limit to SIMPLE plans  $3,000  $3,000


2021 Social Security Cost-of-Living Adjustment 

The Social Security wage base in 2021 will increase to $142,800 from the 2020 wage level of $137,700. The combined Social Security and Medicare tax rate remains at 7.65% and the Social Security portion is 6.2% on wages up to the applicable maximum taxable amount; the Medicare portion is 1.45% on all wages.

The Affordable Care Act imposes an additional 0.9% Medicare tax on high wage earners, applicable on earnings in excess of $200,000 in a calendar year.

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NACHA Operating Rules & Guidelines


The National Automated Clearing House Association (NACHA) manages the development, administration, and governance of the ACH Network in the United States. The following information is provided to update CBIZ clients about several recent and upcoming changes made by NACHA to its Operating Rules and Guidelines.  These excerpts were taken from information posted directly on the NACHA website.   The rules changes noted below are those considered to have a potential impact on CBIZ clients based on the nature of the transactions CBIZ initiates today on their behalf.  Rules changes that were outside the scope of the services CBIZ provides to clients have not been included in the summary below.


Implemented Revisions to the NACHA Operating Rules & Guidelines

Same-Day ACH Limits – implemented 03/2020 – The limit for Same Day ACH transactions increased to $100,000 to help accommodate the approximately 2% of transactions that exceeded the prior threshold of $25,000.


Upcoming Revisions to the NACHA Operating Rules & Guidelines

Same-Day ACH Cutoff Timesexpected to be effective 03/19/2021 – The current cutoff for submitting Same Day ACH transactions is 2:45 pm EST.  This change will allow Same Day ACH files to be submitted through 4:45 pm EST.  This expanded timeframe will allow for the processing of urgent transactions without requiring wire transfers, which often come with higher fees.  This expansion is also intended to minimize the impacts on end-of-day operations at financial institutions and their re-opening activities the following business day.  CBIZ HCM will evaluate opportunities to extend our internal processing windows once our processing banks determine revised deadlines for submission of Same Day ACH through their systems. 



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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.