September 2021 Compliance Alerts
Below are recent Federal Compliance Updates:
ACA Compliance Bulletin – Affordability Percentages Will Decrease for 2022
Overview
On Aug. 30, 2021, the IRS issued Revenue Procedure 2021-36 to index the contribution percentages in 2022 for purposes of determining affordability of an employer’s plan under the ACA.
Employer Impact
The updated affordability percentages are effective for taxable years and plan years beginning Jan. 1, 2022. This is a significant decrease from the affordability contribution percentages for 2021, which were set at 9.83% and 8.27%. As a result, some employers may have to lower their employee contributions for 2022 to meet the adjusted percentage.
Please refer to the attached ACA Compliance Bulletin for more information.
News Brief – President Biden Announces COVID-19 Vaccine Mandates for Federal Employees and Large Employers
Overview
On Thursday, Sept. 9, 2021, President Joe Biden signed executive orders requiring federal workers and contractors to get vaccinated against COVID-19. Biden also directed the Occupational Safety and Health Administration (OSHA) to draft a new emergency rule requiring all businesses with 100 or more employees to ensure all of their workers are either tested for COVID-19 once a week or fully vaccinated.
Employer Impact
Large employers affected by these new rules should begin preparing to comply. Employers with less than 100 employees that are interested in their own vaccine mandates should consult with legal counsel before moving forward. We will continue to keep you updated.
Please refer to the attached News Brief for more information.
Legal Update – OSHA to Mandate Vaccine and Testing Temporary Standard for COVID-19
Overview
On Sept. 9, 2021, President Biden announced that the Occupational Safety and Health Administration (OSHA) is developing an emergency temporary standard (ETS) that will require all employers with 100 or more employees to ensure their workforce is fully vaccinated or they must be tested weekly.
Employer Impact
Employers should continue to protect at-risk, unvaccinated and fully vaccinated workers. Employers should also monitor OSHA communication channels to become familiar with the expected private sector ETS once it is published.
Please refer to the attached Legal Update for more information.
Legal Update – IRS Issues Employer Guidance for Reporting 2021 FFCRA Leave
Overview
On Sept. 7, 2021, the IRS issued Notice 20201-53, providing guidance for employers on how to report wages for FFCRA leave taken in 2021.
Employer Impact
Only employers claiming tax credits for FFCRA leave wages must comply with the reporting requirements.
Please refer to the attached Legal Update for more information.
In The Know – President Biden Offers Additional Financial Support to Small Businesses
Overview
The Biden Administration has called upon the Small Business Association (SBA) to increase financial support for small businesses. Specifically, the SBA is strengthening its COVID-19 Economic Injury Disaster Loan (EIDL) program by increasing available loan amounts from $500,000 to $2 million.
Please refer to the attached Financial Support to Small Businesses for more information.
Employer Impact
Employers can learn more about the EIDL program on the SBA website. Additionally, the SBA published some frequently asked questions (FAQs) to help address specific employer questions.