Holiday traditions are important for many families, and we’re about to enter the second holiday season during the pandemic. Recently, the Centers for Disease Control and Prevention (CDC) released guidelines for safely celebrating this year’s holiday season. The CDC’s top advice is for eligible Americans to get the COVID-19 vaccine before gathering and traveling for the holidays.

Vaccination Is Key

Because many generations tend to gather for holiday celebrations, the best way to minimize COVID-19 exposure and keep your family and friends safe is to get vaccinated (if you’re eligible). By being vaccinated, you can help better protect those not yet eligible for vaccination, such as young children.

Additionally, the CDC shared the following recommendations for the upcoming holiday season:

• • Select a safe location. Celebrate outdoors if you can. Celebrating outdoors is safer than doing so indoors. Further, you should avoid crowded, poorly ventilated spaces whenever possible.
• • Consider wearing masks. Wear a well-fitting mask over your mouth and nose when indoors if you are not fully vaccinated. Remember to not put a mask on children younger than 2 years old. Like last year, you should consider wearing masks if you’ll be spending the holidays with people from outside of your home or in an area with high transmission of COVID-19.
• • Get tested as needed. Be sure to get tested if you have symptoms of COVID-19 or come in close contact with someone who has COVID-19.
• • Travel with caution. Delay holiday travel, such as flying, unless you’re fully vaccinated. If you’re not fully vaccinated or traveling with children who aren’t eligible yet for the COVID-19 vaccine, choose other travel methods, such as driving.

Suppose you gather with a group of people from multiple households and—potentially—from different parts of the country. In that case, you could consider additional precautions, such as avoiding crowded indoor spaces before travel or taking a COVID-19 test in advance of gathering.

By working together, Americans can enjoy safer holidays, travel smart and protect their health—as well as the health of their family and friends. (pdf)

The Occupational Safety and Health Administration (OSHA) recently announced a federal emergency temporary standard (ETS) to address the grave danger of COVID-19 infection in the workplace. Affected employers include private employers with 100 or more employees (firmwide or companywide count). State plans will have 30 days to adopt the federal ETS or implement their own vaccination standard.

The 5th Circuit Court of Appeals issued an extended stay of the ETS on Nov. 12, 2021. As a result, OSHA has suspended ETS implementation and enforcement pending future developments in the litigation.

Vaccination and Testing Requirements

The ETS requires employers to:

• Develop, implement and enforce a mandatory COVID-19 vaccination policy; or
• Create a policy allowing employees to choose to get a vaccination or wear a face covering in the workplace and have weekly COVID-19 testing done.

Employers must also determine the vaccination status of each employee, obtain acceptable proof of vaccination and keep a roster of each employee’s vaccinations status.

Paid Leave Requirements

Employers are required to allow reasonable time—including up to four hours of paid time—for employees to receive a primary vaccination dose. Reasonable time and paid sick leave are also required to be provided to recover from any side effects of the vaccination.

Employer Takeaway

This situation is fluid and additional action by the courts is expected. Employers may wish to become familiar with the ETS requirements and should monitor related legal developments in the event future compliance is required.

Contact Deutsch & Associates, LLC today for additional resources.

Final Forms for 2021 ACA Reporting Released

The Internal Revenue Service (IRS) released final 2021 forms for reporting under Internal Revenue Code (Code) Sections 6055 and 6056.

• 2021 Forms 1094-B and 1095-B are the forms that will be used by providers of minimum essential coverage (MEC), including self-insured plan sponsors that are not applicable large employers (ALEs), to report under Section 6055.
• 2021 Forms 1094-C and 1095-C are the forms that will be used by ALEs to report under Section 6056 and for combined Section 6055 and 6056 reporting by ALEs who sponsor self-insured plans.

No substantive changes were made to the forms for 2021 reporting. These forms are substantively identical to the final 2020 versions.

Final instructions have not been released yet. However, draft instructions (for Forms 1094-B and 1095-B as well as for Forms 1094-C and 1095-C) are available, which include updated penalty maximums for 2021. Keep in mind that certain other changes may be made once the instructions are finalized.

Important Dates

Employers should note the upcoming deadlines for Affordable Care Act (ACA) reporting:

• Individual statements for 2021 must be furnished by Jan. 31, 2022.
• Paper IRS returns for 2021 must be filed by Feb. 28, 2022.
• Electronic IRS returns for 2021 must be filed by March 31, 2022.

Action Steps

Employers should become familiar with these forms for reporting for the 2021 calendar year. Note additional information may become available regarding these forms once final instructions are released. (pdf)

On Nov. 17, 2021, federal agencies released an interim final rule requiring health plans and issuers to report information regarding the cost of prescription drugs and certain medical expenses. This rule is a continuation of the Biden administration’s efforts to promote greater transparency in health care spending.

Overview of the Interim Final Rule

This rule requires plans and issuers in the group and individual markets to submit certain information on prescription drug and other health care spending to federal agencies annually, including:

• • General information regarding the plan or coverage;
• • Enrollment and premium information;
• • Total health care spending by enrollees versus employers and issuers;
• • The 50 most frequently dispensed brand prescription drugs, the 50 costliest prescription drugs by total annual spending and the 50 prescription drugs with the greatest increase in expenditures from the previous year;
• • Prescription drug rebates, fees and other compensation paid to the plan or issuer; and
• • The impact of prescription drug rebates, fees, and other compensation on premiums and out-of-pocket costs.

For 2020 and 2021 information, reporting must be submitted by Dec. 27, 2022, and by June 1 of each year thereafter. Starting in 2023, federal agencies will issue biennial public reports on prescription drug pricing trends as well as the impact of prescription drug costs on premiums and out-of-pocket costs.

Employee Benefit Plan Limits for 2022

Many employee benefits are subject to annual dollar limits that are periodically updated for inflation.

The IRS typically announces the dollar limits that will apply for the next calendar year well before the beginning of that year. This gives employers time to update their plan designs and ensure that their plan administration will be consistent with the new limits. Although most of the limits will increase for 2022, some of the limits remain the same.

Increased Limits

For plan years beginning on or after Jan. 1, 2022, the following limits have increased:

• • Health savings account contributions: o Single coverage—$3,650 (up $50)
• o Family coverage—$7,300 (up $100)
• • High deductible health plan (HDHP) out-of-pocket maximum limit: o Single coverage—$7,050 (up $50)
• o Family coverage—$14,100 (up $100)
• • Health FSA contribution limit—$2,850 (up $100)
• • Health FSA carryover limit—$570 (up $20)
• • Transportation fringe benefit plan monthly limits—$280 (up $10)
• • Employees’ elective deferrals to 401(k) plans—$20,500 (up $1,000)
• • Tax exclusion for adoption assistance benefits—$14,440 (up $140)

Unchanged Limits

Certain limits will not change for 2022, including the HDHP minimum deductible and catch-up contribution limits to HSAs or 401(k) plans. The tax exclusion for dependent care FSA benefits also returns to traditional rules. (pdf)

What Happens if an Employee Misses Open Enrollment?

For an employee, missing open enrollment can mean losing coverage or being unable to change benefits elections, which can have a significant financial impact on the employee. For employers, when employees miss this deadline, it can result in additional administrative burdens and unhappy or unproductive employees.

However, legally, employers are not required to do anything for employees who have missed the open enrollment deadline. In fact, the terms of a benefits plan may prohibit an employer from making exceptions for employees who do not make benefits elections within a certain time period, such as before the new plan year begins.

The only exception to these terms is if an employee qualifies for a special enrollment period (SEP). Employees who experience qualifying life-changing events (such as getting married, divorced or legally separated, having or adopting a child, or moving to a new residence or work location that affects benefits eligibility) are eligible to enroll in or make changes to their benefits elections outside of the open enrollment period. It is in an employer’s best interest to create simple and comprehensive policies and procedures so that they are prepared in the event of a SEP. Employers concerned about complying with the technicalities of SEPs should contact their broker representative.

3 Workplace Perks Part-time Workers Want Right Now

In some cases, part-time employees don’t qualify for benefits packages. In others, they are only offered limited perks. Employers can consider offering benefits that speak directly to the unique needs of part-time workers. Here are three to think about:

1. Scheduling Power

Scheduling autonomy is a huge perk for part-time employees. These workers might not work full time for a variety of reasons, scheduling conflicts chief among them. Allowing part-time employees to choose when they work can be a huge attraction and retention tool.

2. Early Wage Access

This is when an employee receives money they earned a few days ahead of their normal pay date. This early access can lead to greater overall employee productivity and well-being, as it saves employees from seeking high-interest loans that can lead to further debt. Moreover, since the employees have already earned the money they’re gaining access to, there is little risk to employers.

3. Streamlined Communication Solutions

Employers can consider streamlining communication using a consistent technology platform, such as a company webpage or app. On such a platform, employers could post scheduling information and communicate directly with employees in one spot rather than using individuals’ personal emails.

Summary

Part-time workers can be just as important to businesses as full-time employees. Offering workplace perks that speak to part-time employees’ unique needs can be critical for productivity, well-being and retention. (pdf)