On May 18, 2021, the IRS issued Notice 2021-31, a guidance document on the American Rescue Plan Act (ARPA) subsidy for continuation health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). The Notice discusses the background of the subsidy and includes 86 questions and answers (Q&As) about its application.
President Biden Announces Tax Credit for Small Businesses Offering Paid Leave for Vaccination
Recently, President Joe Biden issued a call for employers to take additional steps to help get their employees and communities vaccinated against COVID-19.
As part of that effort, president Biden announced a paid leave tax credit for small- and medium-sized businesses. This credit will allow eligible employers to fully offset the cost of paid leave for employees to get vaccinated and recover from any after-effects of the vaccination.
DOL Issues FAQ's About American Rescue Plan's COBRA Subsidy
On April 7, 2021, the U.S. Department of Labor (DOL) issued answers to frequently asked questions (FAQs) about the American Rescue Plan Act’s (ARP) premium assistance for health insurance continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) and similar state mini-COBRA programs. The DOL’s FAQs are reprinted in this Compliance Bulletin.
American Rescue Plan: Changes to FFCRA Employee Leave
The American Rescue Plan Act (ARPA), enacted March 11, 2021, includes changes to emergency paid sick leave and paid family leave under the Families First Coronavirus Response Act (FFCRA). The ARPA extended the tax credits through Sept. 30, 2021, for employers that continue to provide FFCRA leave voluntarily (beyond the Dec. 31, 2020, expiration date) and made changes to tax credit eligibility for both types of FFCRA leave.
COVID-19 Exchange Special Enrollment Period Extended
On March 23, 2021, the Centers for Medicare & Medicaid Services (CMS) announced that it is extending access to a special enrollment period (SEP) through Exchanges on the federal www.HealthCare.gov platform due to the coronavirus (COVID-19) pandemic. Originally available through May 15, 2021, the extended SEP provides three additional months for enrollment, allowing eligible individuals to enroll in Exchange coverage through Aug. 15, 2021.