© 2021 American Payroll Institute, Inc. Inside this issue... Reminder: Payment of Deferred Social Security Tax From 2020 Is Due Soon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 IRS Announces 2022 Retirement Plan Contribution, Benefit Limits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 IRS Announces 2022 COLAs for Transportation Fringes, FSA Deferrals, Foreign Earned Income Exclusion, and More. . . . . . . . . . . 3 IRS Proposes Rules to Extend Deadlines for Furnishing ACA Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 IRS Releases 2022 Tables That Will Be Available in Publication 15-T. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 OSHA Issues Vaccine Mandate Court Halts Standards for Further Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 IRS Updates 2021 Form W-2 Information to Reflect DCAP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 DOL Finalizes Rule to Increase Federal Contractor Minimum Wage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Virgin Islands Subject to Credit Reduction for 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 IRS Posts New Revisions for Drafts of 2022 Forms W-4P, W-4R Confirms Employers Should Use Them, But They Are Not Required for 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 IRSAC Annual Report Addresses Taxpayer First Act, Filing Threshold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 IRS Announces Quarterly Interest Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 IRS to Turn Off Form 7200 Fax Line After January 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 IRS Gives Guidance on Temporary Increase for Food, Beverage Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Verification of Employment Response for Child Support Finalized. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Specifications for Substitute Forms W-2 and W-3 Updated for 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Court Rules Employer Could Not Force Employee to Work Without Pay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 HHS Raises Civil Penalties for HIPAA Violations, NDNH Misuse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Court Approves $43 Million Consent Judgment in Misclassification Case. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 DOL Creates Webpage for Wage and Hour Stats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 DOL Releases Enforcement Stats for Fiscal Year 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Submit Your Questions for Agencies to Answer at Congress 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 DHS Adjusts Immigration-Related Civil Penalties for Inflation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 State and Local News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 December 3, 2021 Volume 29 Issue 12 President Signs Infrastructure Bill That Ends ERC Early On November 15, President Biden signed H.R. 3684, the Infrastructure Investment and Jobs Act, into law [Pub. L. 117-58]. The law ends the employee retention credit (ERC) as of September 30, 2021 (the end of the third quarter) for most employers. The legislation retains the ERC for recovery startup businesses that pay qualified wages between July 1 and December 31, 2021. ERC changes during the year Originally created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the ERC was set to expire on December 31, 2020, but it was extended and expanded through June 30, 2021, by the Consolidated Appropriations Act, 2021. The American Rescue Plan Act of 2021 (ARPA) extended the ERC for qualified wages paid between July 1 and December 31, 2021, and retained the provisions included in the CAA that expanded the credits (see PAYROLL CURRENTLY, Issue 4, Vol. 29). Recovery startup businesses. The ARPA also expanded the ERC to businesses started after February 15, 2020, if they have annual receipts of less than $1 million. These businesses may be eligible for the credit even if they were not shut down due to a COVID-19 lockdown order or did not experience a significant reduction in receipts. The credit for these startup businesses is limited to $50,000 per quarter. Under the new law, recovery startup businesses can still claim the ERC through December 31, 2021. Guidance needed. Because the provision ending the ERC early is effective retroactively, the IRS said it will issue guidance for employers that reduced their employment tax deposits in anticipation of the tax credit or requested an advance of the ERC by filing Form 7200, Advance Payment of Employer Credits Due to COVID-19. If a business already submitted Form 7200 to request an advance payment of the ERC for the fourth quarter, and the form has not been processed, the IRS will use Line H to see if it is a recovery startup business. If a business received an advance payment and is no longer eligible to claim the ERC, the business should include the advance on Form 941, Employer’s Quarterly Federal Tax Return, Line 13h, for the quarter. In this case, the business may have a balance
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