© 2020 American Payroll Institute, Inc. Inside this issue... IRS Increases FSA Carryover Amount to $550. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 IRS Announces HSA Limits for 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 IRS Releases Draft Form 941 Schedule R, Schedule B, Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 DOL Issues Final Rule for Fluctuating Workweek Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 APA Offers Virtual Congress for Education, Networking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 IRS Updates FAQs on Health Plan Expenses for Employee Retention Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 SBA Releases PPP Loan Forgiveness Application, Interim Rule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Reporting Agents Can Sign, Submit Form 7200 on Behalf of Clients. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Temporary Requirements for Form I-9 Compliance Extended by 30 Days. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 DOL Updates FAQs on FFCRA Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 DOL Begins to Enforce COVID-19-Related Leave Violations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 APA to Present ‘Payroll Compliance Update Amid COVID-19’ Webinar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 IRS Issues Proposed Rule for Withholding on Retirement, Annuity Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 DOL Issues Final Rule for Retail or Service Establishments Under FLSA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 SSA Releases Tax Year 2020 W-2 Electronic Filing Specs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 IRS Revises FIRE Application, Adds Due Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 USCIS Reminds Employers How to Verify Lawful Permanent Residents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 EEOC Delays 2019 EEO-1 Report Data Collection Until March 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 APA Offers PayTalk Podcast for Payroll Professionals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 IRS Reminds Businesses of Closed P.O. Boxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Plan Ahead for Mergers, Acquisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 States Receive Approval for Advances on Unemployment Account Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 IRS Revises Form for Payroll Deduction Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 IRS Extends Deadlines for Correcting Employment Taxes Grants CPEOs Filing Waiver From Using Magnetic Media. . . . . . . . . 14 State and Local News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 June 5, 2020 Volume 28 Issue 6 IRS Allows Flexibility With Cafeteria Plans and Mid-Year Changes Tcafeteria he IRS issued guidance to allow temporary changes to §125 plans so employees can make mid-year changes and allows the claim period for flexible spending arrangements (FSAs) and dependent care assistance programs to be extended [IR-2020-95, 5-12-20]. Notice 2020-29 also grants relief for high deductible health plans (HDHPs) to cover expenses related to the novel coronavirus (COVID-19) and adds a temporary exemption for telehealth services retroactively to January 1, 2020 [Notice 2020-29, 2020-22 IRB 864]. Why the IRS is allowing the temporary changes Due to the nature of the public health emergency posed by COVID-19 and unanticipated changes in the need for medical care, some employers have indicated to the IRS a willingness to offer employees who initially declined to elect employer-sponsored health coverage an opportunity to elect health coverage or allow employees enrolled in employer- sponsored health coverage to enroll in a different plan offered by the same employer or drop their existing employer- sponsored health coverage to enroll in other health coverage not offered by their employer (for example, coverage offered by a spouse’s employer). In addition, some employees may have an increase or decrease in medical expenses due to unanticipated changes in the need for or availability of medical care and may wish to increase or decrease amounts in their health FSAs. Also, some employees may have a change in the need for dependent care assistance due to the unanticipated closure of schools and child care providers and changes to the employee’s work location or schedule. Depending on an employee’s circumstances, the exceptions set forth in Treas. Reg. §1.125-4 may not apply with respect to election changes that employees may wish to request for employer-sponsored health coverage, FSAs, and dependent care assistance programs.
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