Paycheck Protection Program Flexibility Act On June 5, 2020, President Trump signed legislation (H.R. 7010) enacting the Paycheck Protection Program Flexibility Act (PPPFA) which amends the CARES Act’s Payroll Protection Program (PPP). Some of the key amendments are as follows: The covered period during which borrowers must spend the PPP
By Timothy Johnson
On May 12, 2020, the Internal Revenue Service (IRS) released two notices providing relief for 2020 cafeteria plans and related benefit issues in light of the COVID-19 national emergency. Notice 2020-29 focuses on permissible mid-year election changes under § 125 of the Internal Revenue Code and Notice 2020-33 focuses on allowable carryover provisions for
By Timothy Johnson
The Families First Coronavirus Response Act (FFCRA) was signed into law on March 18, 2020 and went into effect on April 1. The Department of Labor has provided additional guidance on the new law, which we strongly encourage employers to read. Summary For certain circumstances related to COVID-19, employees will be
By Timothy Johnson
On June 28, 2019, California Governor Gavin Newsom signed into law a state budget for 2019-2020 that establishes a state individual mandate, effective Jan. 1, 2020. This state-based individual mandate will require California residents to maintain acceptable health coverage or pay a penalty, beginning in 2020. This new mandate was
By Timothy Johnson
On July 22, 2019, the IRS announced that the affordability percentage under the Affordable Care Act’s play or pay rules will decrease to 9.78 percent for 2020 plan years. This is a decrease from 9.86 percent for 2019 plan years. By way of background, the ACA’s employer shared responsibility provision – often called the
By Timothy Johnson
Section 125 Plans (Cafeteria Plans) Many employers struggle with the challenge of providing an attractive compensation package at an affordable price. One tool available to meet this challenge is the Section 125 plan. Section 125 plans are also commonly referred to as cafeteria plans. While there are different types of
By Timothy Johnson
On June 13, 2019, the Departments of Labor, Health and Human Services, and the Treasury released an advance copy of a Final Rule on Health Reimbursement Arrangements (HRAs). It will be published in the Federal Register on June 20, 2019. The rule expands the types of HRAs that can be offered starting
By Timothy Johnson
On May 28, 2019, the Internal Revenue Service (IRS) released Revenue Procedure 2019-25 announcing the annual inflation-adjusted limits for health savings accounts (HSAs) for calendar year 2020. An HSA is a tax-exempt savings account that employees can use to pay for qualified health expenses. To be eligible for an HSA,
By Timothy Johnson
