The CARES Act became law on March 27, 2020, and is a $2.2 trillion economic stimulus package designed to support individuals and businesses affected by the COVID-19 pandemic. This Act is important because it provides federal dollars at this time of crisis to state unemployment insurance benefit (UI) programs and to individuals who would not … Continue reading Overview of Unemployment Benefits Changes Under the CARES Act
On Friday, March 20, the U.S. Treasury, IRS, and U.S. Department of Labor announced their plans for making the paid leave provisions in the Families First Coronavirus Response Act (FFCRA) less burdensome for small businesses. Key points include: To take immediate advantage of the paid leave credits, businesses can retain and access funds that they … Continue reading FFCRA Payroll Tax Credit – Easing the COVID19 Burden for Employers
OVERVIEW On Dec. 20, 2019, President Trump signed into law a spending bill that prevents a government shutdown and repeals the following three taxes and fees under the Affordable Care Act (ACA): The Cadillac tax on high-cost group health coverage, beginning in 2020; The medical devices excise tax, beginning in 2020; and The health insurance … Continue reading CADILLAC TAX AND OTHER KEY ACA TAXES REPEALED
Are you compliant? January 2020 is around the corner.
Department of Labor (DOL) announced a new final rule that updates the salary thresholds that some individuals must meet in order to qualify for a minimum wage and
overtime exemption under the federal Fair Labor Standards Act (FLSA). The final rule becomes effective on Jan. 1, 2020.
2019 Overtime Final Rule
The final rule affects the exemptions for executive, administrative and professional (EAP) employees, highly compensated employees (HCEs), employees in the motion picture industry and individuals who work in various U.S. territories.
The final rule’s salary levels differ from both the 2016 and 2019 proposed levels. For 2020, the final rule EAP and HCE salary exemptions are as follows:’
Standard salary level: $35,568 per year ($684 per week)
HCEs: $107,432 per year
The DOL intends to update the standard salary and HCE total annual compensation levels more regularly in the future through notice-andcomment rulemaking.
Employer Action Steps
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The IRS announced an increase to flexible spending account (FSA) contribution limits for the 2020 plan year. Individuals can contribute $2,750 in 2020, up $50 from the previous year. Since this announcement came so late in the year, some employers may not use the updated figures in their benefits limits—as doing so would require an … Continue reading FSA Contribution and Other Benefits Limits Rise for 2020
On June 13, 2019, the Departments of Labor (DOL), Health and Human Services (HHS) and the Treasury (Departments) issued a final rule that expands the usability of health reimbursement arrangements (HRAs). Effective in 2020, the final rule establishes two new types of HRAs: Individual Coverage HRA: Allows employers to offer an HRA to be used … Continue reading Final Rule Expands Options For HRAs
Each year, the Kaiser Family Foundation and the Health Research & Educational Trust conduct a survey to examine employer-sponsored health benefit trends such as annual deductibles, plan enrollment, and health and wellness programs. The 2018 edition of this survey has been released, and it discusses a lot, including how health care costs continue to rise. … Continue reading Health Care Costs Still Rising, According to Annual Survey