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Compliance Bulletin EEOC Updates Guidance on COVID Vaccines

On May 28, 2021, the Equal Employment Opportunity Commission (EEOC) added new frequently asked questions (FAQs) on employer COVID-19 vaccination programs and the restrictions imposed on them by the Americans with Disabilities Act (ADA) and other federal fair employment laws. This Compliance Bulletin provides the EEOC’s complete, updated FAQs on the coronavirus pandemic and the ADA, which includes the new guidance on vaccines, including vaccine incentives.

Click here to download the compliance bulletin

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in employee benefits insurance including group medical, dental, vision, life insurance, short and long term disability, voluntary life, employee assistance programs, wellness programs, individual life insurance, and more. Our insurance and risk management advisors are experts can provide valuable services including benefits plan design and administration, human resources support, funding options, compliance assistance, benefit administration, and enrollment services. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.

HSA HDHP Limits Increase for 2022On May 10, 2020, the IRS released Revenue Procedure 2021-25 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2022. The IRS is required to publish these limits by June 1 of each year. These limits include:

  • The maximum HSA contribution limit;
  • The minimum deductible amount for HDHPs; and
  • The maximum out-of-pocket expense limit for HDHPs.

 

These limits vary based on whether an individual has self-only or family coverage under an HDHP.

Eligible individuals with self-only HDHP coverage will be able to contribute $3,650 to their HSAs for 2022, up from $3,600 for 2021. Eligible individuals with family HDHP coverage will be able to contribute $7,300 to their HSAs for 2022, up from $7,200 for 2021. Individuals who are age 55 or older are permitted to make an additional $1,000 “catch-up” contribution to their HSAs.

The minimum deductible amount for HDHPs remains the same for 2022 plan years ($1,400 for self-only coverage and $2,800 for family coverage). However, the HDHP maximum out-of-pocket expense limit increases to $7,050 for self-only coverage and $14,100 for family coverage.

Click here to download the compliance bulletin

Ryan Laude is a Client Advisor at Gulfshore Insurance specializing in employee benefits. Ryan works with a wide range of businesses to create the best funding options that fit their needs. Comments and questions are welcome at rlaude@gulfshoreinsurance.com

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in employee benefits insurance including group medical, dental, vision, life insurance, short and long term disability, voluntary life, employee assistance programs, wellness programs, individual life insurance, and more. Our insurance and risk management advisors are experts can provide valuable services including benefits plan design and administration, human resources support, funding options, compliance assistance, benefit administration, and enrollment services. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.

Join us at any of the upcoming, free Acrisure compliance webinars!

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Click here to download the calendar of upcoming webinars

If you have any questions or need assistance, please reach out to your Gulfshore Insurance Account Manager.

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in employee benefits insurance including group medical, dental, vision, life insurance, short and long term disability, voluntary life, employee assistance programs, wellness programs, individual life insurance, and more. Our insurance and risk management advisors are experts can provide valuable services including benefits plan design and administration, human resources support, funding options, compliance assistance, benefit administration, and enrollment services. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.

Employee Benefits New Tax Credit for Employers that Offer PTO for COVID 19 VaccinationsThe White House announced a new paid leave tax credit that fully offsets the cost for small businesses to offer paid time off (PTO) for employees who elect to get a COVID-19 vaccination. Find out how this new tax credit works, which organizations are eligible, and what else employers need to know.

What is the New Tax Credit for Employers that Offer PTO to Employees for COVID-19 Vaccinations?

In a fact sheet issued by the Biden administration, the White House announced a new paid leave tax credit designed to incentivize employers to encourage their employees to get a COVID-19 vaccination. Paid leave granted includes both time off for employees to actually get the shot(s) and also any necessary recovery time. The provision is a component of the American Rescue Plan Act (ARPA), a stimulus bill that was passed in March 2021.

Here’s how it works:

  1. The tax credit for paid sick leave can be claimed by eligible employers that offer up to 80 hours (10 workdays), limited to $511 per day (and $5,110 total, at 100% of their regular rate of pay) to each employee who elects to receive a COVID-19 vaccine.
  2. The tax credit for paid family leave wages is equivalent to family leave wages paid for up to 12 weeks, limited to $200 per day and $12,000 total (at two-thirds the employee’s regular rate of pay).

According to the White House’s fact sheet, the tax credit applies to nearly half of all private-sector workers in the U.S.

Which Employers Are Eligible for the Paid Leave Tax Credit?
Eligible employers include any business—including tax-exempt organizations—that have less than 500 employees. This also includes government employers and other similar federal agencies. The IRS also states that self-employed individuals are eligible for “similar tax credits.”

How Long Does the Tax Credit Last?
Eligible employers that offer paid sick and family leave for COVID-19 vaccinations can claim the tax credit for time off wages granted between April 1, 2021, and Sept. 30, 2021.

Employers should also note that thanks to a provision in ARPA, the 10-day/80-hour limit for paid sick leave under the Families First Coronavirus Response Act (FFCRA) was reset on April 1, 2021. As a result, employees who exhausted their paid sick leave prior to this deadline are entitled to an additional 10 days or 80 hours.

How Do Organizations Elect the Paid Leave Tax Credit?
Tax credits for sick and family leave can be claimed when employers file their quarterly Form 941. Additionally, the IRS states that the refundable paid leave credits are tax credits against the employer’s share of the Medicare tax.

Employers and HR teams should review the IRS’s fact sheet to learn more about how to elect this tax credit.

We will continue to share information as it becomes available and keep you informed.

Ryan Laude is a Client Advisor at Gulfshore Insurance specializing in employee benefits. Ryan works with a wide range of businesses to create the best funding options that fit their needs. Comments and questions are welcome at rlaude@gulfshoreinsurance.com

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in employee benefits insurance including group medical, dental, vision, life insurance, short and long term disability, voluntary life, employee assistance programs, wellness programs, individual life insurance, and more. Our insurance and risk management advisors are experts can provide valuable services including benefits plan design and administration, human resources support, funding options, compliance assistance, benefit administration, and enrollment services. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.

IRS Extends Time to Make IRA, HSA Contributions and File Forms 1040On March 29, 2021, the Internal Revenue Service issued Notice 2021-21, which extends tax deadlines for filing Form 1040 series returns and other deadlines to May 17, 2021. The Notice, issued as a result of the ongoing COVID-19 pandemic, follows a prior IRS extension (also to May 17, 2021) of the federal income tax filing due date for individuals for the 2020 tax year.

The Form 1040 series includes Form 1040, Form 1040-SR, Form 1040-NR, Form 1040-PR, and Form 1040-SS. Businesses and other types of taxpayers that file federal income tax returns on forms outside of the Form 1040 series are not eligible for the extension. In addition, the Notice does not alter the April 15, 2021 deadline for estimated tax payments.

Contributions to IRAs and Other Accounts

The Notice automatically postpones, to May 17, 2021, the time for individuals to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), Archer medical savings accounts (Archer MSAs), and Coverdell education savings accounts.

Notice 2021-21 also postpones, to June 30, 2021, the due date for Form 5498 series returns related to these accounts (Form 5498, Form 5498-ESA, Form 5498-SA). These forms must usually be filed with the IRS and furnished to participants and beneficiaries by the due date specified in general instructions for other information returns. The period beginning on the original due date of those forms and ending on June 30, 2021, will be disregarded in calculating any penalty for failure to file.

Click here to download the legal update

Ryan Laude is a Client Advisor at Gulfshore Insurance specializing in employee benefits. Ryan works with a wide range of businesses to create the best funding options that fit their needs. Comments and questions are welcome at rlaude@gulfshoreinsurance.com

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in employee benefits insurance including group medical, dental, vision, life insurance, short and long term disability, voluntary life, employee assistance programs, wellness programs, individual life insurance, and more. Our insurance and risk management advisors are experts can provide valuable services including benefits plan design and administration, human resources support, funding options, compliance assistance, benefit administration, and enrollment services. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.