Capitol Benefits Group News & Updates
DOL Updates Model Employer CHIP Notice
The Department of Labor (DOL) has released an updated model Employer CHIP Notice with information current as of July 31, 2021. As a reminder, employers with group health plans that cover participants in states that provide premium assistance subsidies through Medicaid or the Children's Health Insurance Program (CHIP) are required to notify their employees annually, regardless of the employer's location.
The DOL's model notice, which employers may use for this disclosure, is updated periodically to reflect changes in the states that offer premium assistance subsidies, as well as the contact information for those states. Click here for more information.
IRS Issues Guidance for Reporting 2021 FFCRA Leave Wages
Requirements Apply Only to Employers Claiming Tax Credit for Leave
IRS Notice 2021-53, issued Sept. 7, 2021, provides guidance for employers on how to report qualified sick and family leave wages for employee leave taken in 2021 under the Families First Coronavirus Relief Act (FFCRA), as amended by the COVID-Related Tax Relief Act of 2020 and the American Rescue Plan Act of 2021. In July 2020, the IRS issued Notice 2020-54 about reporting for FFCRA leave taken in 2020.
Reporting Requirement
Employers are required to report qualified 2021 FFCRA leave wages to employees on either a 2021 Form W-2 (Box 14) or in a separate statement provided with the Form W-2. The requirement applies only to employers who claim tax credits for the leave wages under the relevant legislation.
According to the notice, there are separate reporting requirements for leave provided from Jan. 1, 2021-March 31, 2021, and for leave provided from April 1, 2021-Sept. 30, 2021. The notice gives additional specific reporting instructions for leave wages that must be entered on Box 1, 3 or 5 of Form W-2. The guidance also includes model language employers may provide as part of the Form W-2, Box 14 Instructions for Employee, or in a separate statement.
Paid Sick and Family Leave Under FFCRA
The FFCRA, passed in March 2020, required employers with fewer than 500 employees to provide paid sick and family leave for specific COVID-19-related reasons and included employer tax credits to cover leave costs. The leave requirement expired in December 2020. However, the Tax Relief Act of 2020 and the American Rescue Plan Act extended the tax credits for employers who chose to continue to provide FFCRA leave, first through March 31, 2021, and then through Sept. 30, 2021.
Reminder: Medicare Part D Notices Are Due Before Oct. 15, 2021
Requirement Applies to Employers that Offer Prescription Drug Coverage
Employers who sponsor group health plans that offer prescription drug coverage to Medicare-eligible individuals must provide a Medicare Part D Creditable or Non-Creditable Coverage Notice to those individuals before October 15.
These notices inform Medicare-eligible individuals whether the plan's prescription drug coverage is expected to pay, on average, as much as the standard Medicare prescription drug coverage (meaning it is "creditable").
For more information on this notice requirement, including links to downloadable model notices, click here.
OSHA to Mandate Vaccine and Testing Temporary Standard for COVID-19
On Sept. 9, 2021, President Biden announced that the Occupational Safety and Health Administration (OSHA) is developing an emergency temporary standard (ETS). The new ETS will require private-sector employers with 100 or more employees to ensure their workforce is fully vaccinated or test negative for COVID-19 every week before coming to work.
This announcement follows the vaccination, masking and social distancing requirements issued by the president in July for the public sector-federal employees and on-site contractors.
There currently is no time frame as to when the new ETS will be released. The government estimates that the ETS will impact over 80 million private-sector workers.
Current OSHA ETS
OSHA currently has a COVID-19 ETS for the health care and health care support workers. This ETS covers hospitals, nursing homes and assisted living facilities; emergency responders; home health care workers; and employees in ambulatory care settings where suspected or confirmed COVID-19 patients are treated.
OSHA has also issued guidance to help employers and workers not covered by the health care ETS. This guidance is to help employers protect workers who are unvaccinated, otherwise at-risk, or fully vaccinated but in areas of substantial or high community transmission.
Next Steps
Employers should continue to protect at-risk, unvaccinated and fully vaccinated workers. Employers should also monitor OSHA communication channels to become familiar with the expected private sector ETS once it is published.
IRS Updates Form 941 Employer's Quarterly Federal Tax Return
The IRS has released the latest version of its Form 941, Employer's Quarterly Federal Tax Return, which must be filed each quarter by employers to report income taxes, Social Security tax or Medicare tax withheld from employees' paychecks, and to pay the employer's portion of Social Security or Medicare tax.
The second quarter form reflects changes made by the American Rescue Plan Act (ARPA) and other legislation enacted as a result of COVID-19. These updates include the following:
New lines for claiming credit for COBRA premium subsidy payments under the ARPA;
Changes to the way employers report qualified sick and family leave wages and the credit for these wages;
Instructions for claiming the employee retention credit for wages paid before July 1, 2021.
The deadline to file Form 941 for the second quarter was August 2, 2021.
The content herein is provided for general information purposes only, and does not constitute, legal, tax, or other advice or opinions on any matters. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy.
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