© 2021 American Payroll Institute, Inc. Inside this issue... IRS Provides Guidance on Continued Flexibility for Cafeteria Plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Passage of COVID-19 Relief Legislation Would Impact Payroll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 EEOC Updates EEO-1 Data Collection Information for April Report California Employers Required to Submit Report Based on Federal Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 DOL Delays Tip Credit, Worker Classification Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 IRS Releases Draft Instructions for Form 941. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 FUTA Credit Reduction States Likely to Increase for 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 IRS Issues Flyer to Encourage Electronic Delivery of IRS Levies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Get Compliance Questions Answered at Virtual Capital Summit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 IRS Updates ‘Eligible Employer’ FAQs for COVID-19-Related Tax Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 IRS Provides Guidance on the ERC for 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 IRS Provides Information on Filing Form 944-X . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 State Unemployment Insurance Taxable Wage Bases for 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Register Early for Congress Xstream to Attend Bonus Events. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 IRS Adjusts Foreign Housing Cost Exclusion Amount for 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Employees Cannot Receive Cash Refunds for Unused QTF Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 SIFL Rates for 1st Half of 2021 Announced. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 IRS Announces Quarterly Interest Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 DOL Withdraws Opinion Letters Addressing FLSA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Court Withdraws Prior Ruling on Salary Basis, Agrees Daily Rate May Satisfy Requirement for FLSA Exemption. . . . . . . . . . . . . . 12 IRS Says Draft Forms W-4P, W-4R Can Be Used to Update Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 OCSE Updates IWO Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 IRS Revises Form to Request a Waiver From Filing Electronically . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 State and Local News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 March 5, 2021 Volume 29 Issue 3 IRS Releases 2021 Publications 15 (Circular E), 15-A, and 15-B T(Publication he IRS released the 2021 Circular E, Employer’s Tax Guide 15), the Employer’s Supplemental Tax Guide (Publication 15-A), and the Employer’s Tax Guide to Fringe Benefits (Publication 15-B). COVID-19 items to note Flexible spending arrangements (FSAs). Due to the COVID-19 pandemic, employers with participants in health and dependent care FSAs can amend their plans to: - Allow participants in health and dependent care FSAs to carry over any unused benefits or contributions remaining in the account from the plan year ending in 2020 to the plan year ending in 2021 and also from the plan year ending in 2021 to the plan year ending in 2022. - Allow a 12-month grace period for unused benefits or contributions in health and dependent care FSAs for plan years ending in 2020 or 2021. - Allow post-termination reimbursements from health FSAs from unused benefits or contributions for calendar year 2020 or 2021 through the end of the plan year in which an employee ceases participation in the plan. - Extend the maximum age of eligible dependents from 12 to 13 for dependent care FSAs for the 2020 plan year and unused amounts from the 2020 plan year carried over into the 2021 plan year, or, for plans for which the end of the last regular enrollment period that occurred on or before January 31, 2020, was for the 2019 plan year, for the 2019 plan year and unused amounts from the 2019 plan year carried over into the 2020 plan year. - Allow a midyear change in the election amounts up to the maximum allowable amount for the year for health and dependent care FSAs for plan years ending in 2021. Wrap-up of COVID-19-related relief. Circular E summarizes the COVID-19-related relief information, including Families First Coronavirus Response Act (FFCRA) tax credits for providing paid emergency sick leave and expanded family and medical leave Coronavirus Aid, Relief, and Economic Security (CARES) Act employee retention
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