IRS Adjusts ACA Affordability Percentage for 2022
Recently, the IRS released Rev. Proc. 2021-36, which announced the 2022 indexing adjustments for two important percentages under the Affordable Care Act (ACA).
IRS Releases Guidance on Employee Retention Credit
On August 4, 2021, the Internal Revenue Service (IRS) published Notice 2021-49 with respect to the 2021 Employee Retention Credit (ERC). Previously, The American Rescue Plan Act (ARPA, P.L. 117-2) extended the ERC through December 2021 and revised certain provisions and ERC eligibility. With this recently issued notice, the IRS provides further details related to some important matters businesses needed clarification on. Specific topics addressed include recovery startup businesses; coordination with PPP loans; severely financially distressed employers; and wages paid to majority owners and spouses, in addition to clarifying other areas.
Incorporating the COVID-19 Vaccine into a Wellness Program: Critical Considerations for Employers
On August 23, 2021, the U.S. Food and Drug Administration (FDA) granted full approval to the Pfizer/BioNTech COVID-19 vaccine – the first such approval of its kind. Along with expanded access to the vaccine, the FDA’s announcement is likely to cause an increase in vaccine mandates in both the private and public sectors. In lieu of a mandate, though, some employers may instead prefer to incentivize employees to get vaccinated.
Reminder: COBRA Subsidy Expiration Date and Notice Requirement
The American Rescue Plan Act of 2021 (“ARPA”) requires group health plans subject to COBRA to provide a 100% COBRA premium subsidy and expanded enrollment rights to those who qualify as assistance eligible individuals (“AEIs”) for a period of six months (April 1, 2021, to September 30, 2021). ARPA also imposed new COBRA notice obligations on group health plans. As the subsidy period nears the end, employers and plan administrators are required to provide a subsidy expiration notice (“Notice”) to AEIs, informing them of the impending subsidy termination.
UPDATED: IRS Releases Guidance on COBRA Premium Assistance under ARPA
On May 18, the Internal Revenue Service (IRS) released Notice 2021-31 (the Notice), providing much-anticipated guidance regarding the COBRA premium assistance and tax credit provisions of the American Rescue Plan Act of 2021 (ARPA). Under ARPA, group health plans subject to COBRA – including state continuation coverage laws – are required to provide free continuation coverage and expanded enrollment rights to those who qualify as assistance eligible individuals. To offset these costs, tax credits will be made available.
CDC Updates Outdoor Mask Guidance for Fully Vaccinated People
The CDC has released new guidance for people who have been fully vaccinated with a COVID-19 vaccine. This update loosens the CDC’s mask-wearing recommendations for those fully vaccinated, allowing many outdoor activities without a mask. This News Brief explains further.