COBRA Subsidy Provisions of the American Rescue Plan Act
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COBRA Subsidy Provisions of the American Rescue Plan Act

The American Rescue Plan Act (ARPA), signed into law March 11, 2021, provides a 100% subsidy of premiums for employer-sponsored group health insurance continued under the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) and similar state continuation of coverage (mini-COBRA) programs. ARPA subsidies cover the full cost of COBRA or mini-COBRA premiums from April 1, 2021, through Sept….

Stimulus Bill Includes Temporary Special Rules for FSAs

Stimulus Bill Includes Temporary Special Rules for FSAs

On Dec. 27, 2020, President Trump signed the Consolidated Appropriations Act of 2021 into law. The Act provides temporary special rules for health and dependent care flexible spending accounts (FSAs) that give employees additional time to use these funds. Extended Periods Because of the COVID-19 pandemic, employees may be more likely to have unused amounts in health…

Stimulus Bill Extends FFCRA Tax Credits but Not Leave Mandate

Stimulus Bill Extends FFCRA Tax Credits but Not Leave Mandate

An appropriations bill, which was signed into law on Dec. 27, 2020, does not extend the leave mandates created by the Emergency Family and Medical Leave Expansion Act (EFMLA) and the Emergency Paid Sick Leave Act (EPSLA), which expire on Dec. 31, 2020. As a result, the requirement for employers to provide employee paid sick leave and expanded…

FSA Limit will Remain the Same for 2021

FSA Limit will Remain the Same for 2021

The Affordable Care Act (ACA) imposes a dollar limit on employees’ salary reduction contributions to health flexible spending accounts (FSAs) offered under cafeteria plans. This dollar limit is indexed for cost-of-living adjustments and may be increased each year. On Oct. 27, 2020, the IRS released Revenue Procedure 2020-45 (Rev. Proc. 20-45), which announced that the health FSA…

Medicare Part D Notices Are Due Before Oct. 15, 2020

Medicare Part D Notices Are Due Before Oct. 15, 2020

Each year, Medicare Part D requires group health plan sponsors to disclose to individuals who are eligible for Medicare Part D and to the Centers for Medicare and Medicaid Services (CMS) whether the health plan’s prescription drug coverage is creditable. Plan sponsors must provide the annual disclosure notice to Medicare-eligible individuals before Oct. 15, 2020—the start…

IRS Extends Deadline for Forms 5500 Due before July 15, 2020

IRS Extends Deadline for Forms 5500 Due before July 15, 2020

On April 9, 2020, the IRS issued Notice 2020-23 to extend key tax deadlines for individuals and businesses in response to the ongoing COVID-19 pandemic. This new tax relief is provided under Section 7508A of the Internal Revenue Code (Code), which gives the IRS authority to postpone deadlines for taxpayers affected by federally declared disasters….