On May 10, 2021, 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.
DOL Updates Q&A on COVID-19 and the FMLA
The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) has updated its “COVID-19 and the Family and Medical Leave Act Questions and Answers” web page, originally published in 2020. As before, the Q&As explain that—under the FMLA—covered employers must provide eligible employees with job-protected, unpaid leave for specified family and medical reasons. Additionally, employees on FMLA leave are entitled to the continuation of group health insurance coverage under the same terms that were in effect before they took leave.
DOL Withdraws Independent Contract Final Rule
On May 5, 2021, the U.S. Department of Labor (DOL) announced it will officially withdraw the Independent Contractor final rule. The withdrawal will be effective on the day the DOL’s official withdrawal is published in the Federal Register. The Federal Register is expected to publish the withdrawal on May 6, 2021.
California Rehire Rules for Workers Displaced by COVID-19
As of Apr. 16, 2021, certain California employers are required to give preference to rehiring and retaining employees displaced by COVID-19 when filling new positions. This new law applies to hotels, private clubs, event centers, airport hospitality operations, airport service providers and enterprises that provide building service to office, retail or other commercial buildings. The law expires Dec. 31, 2024.
IRS Issues Employer Resources on FFCRA Leave Tax Credits
The IRS has released new resources explaining the tax credits available for employers who opt to provide paid family leave and paid sick leave under the Families First Coronavirus Response Act (FFCRA) and the American Rescue Plan Act (ARPA) through Sept. 30, 2021. The new resources consist of a fact sheet and a “snapshot” document published on April 21, 2021, in conjunction with public remarks by President Joe Biden calling on employers to help their employees get vaccinated.