On March 11, 2021, President Biden signed into law H.R. 1319, the “American Rescue Plan Act of 2021” (APRA). The latest in an extended series of COVID-19 economic relief bills, with a price tag of $1.9 trillion and weighing in at an impressive 628 pages, ARPA will bring cumulative US federal pandemic relief spending to approximately $5.7 trillion. While the new law’s consumer provisions – like direct stimulus payments to about 89% of US taxpayers, extended unemployment benefits, and increased child tax credits – have gotten almost all the press coverage related to this law, as with prior laws (FFCRA, CARES Act, CAA) there are many employer-impacting provisions that have so far “flown under the radar.”
At Ascentis, we’ve hauled out our trusty “HCM radar detector” to hone in on just those provisions which may impact and delight (or maybe not?) employers, and the HR community, around the country.
HR Webinar: The New Consolidated Appropriations Act of 2021: What HR Pros Mus...Ascentis
On December 27, 2020, the President signed H.R. 133, the "Consolidated Appropriations Act of 2021". This omnibus law includes the much anticipated and long-awaited COVID Relief Bill, with many of the new provisions taking effect immediately. Weighing in at a "mere" 5,593 pages, the new law renews or extends most of the tax relief programs available to employers under both the FFCRA and the CARES Act. The renewed Paycheck Protection Program, funded with $284.45 billion in new federal spending, is expected to see new lending the week of January 11, 2021, with a number of changes in response to prior program criticisms. Join us at this webinar to review the many provisions of CAA'21 which will impact Human Capital Management.
Payroll Webinar: The A to Z of Payroll Garnishments Part 2Ascentis
Tax levies and creditor garnishments can be some of the most complex tasks required of any payroll department. Payroll must understand all the laws that apply towards processing these types of garnishments backwards and forwards. It is sometimes even up to the payroll department to catch and correct any errors that have been made by anyone else along the way!
Precise and accurate compliance with garnishment regulation can help to reduce or eliminate the emotional and financial toll that can result from these unfortunate situations as well stave off any penalties that may result if processed incorrectly.
This webinar concentrates on processing garnishments, other than child support, in the payroll department. We’ll cover the federal rules for creditor garnishments, the IRS rules for federal tax levies, the various aspects of state tax levies, the key points for processing state creditor garnishments, how to handle voluntary wage assignments like payday loans and student loans. And that’s not all – we’ll also review the IRS Form 668-W.
Payroll Webinar: Paying Overtime Under the FLSA: Part 2Ascentis
This is the second of a two-part webinar that will help you better understand the requirements and procedures involved in overtime calculation. Calculating overtime pay for nonexempt employees sounds so simple. But not so fast. The truth is that overtime rules and the mathematics required to arrive at the correct calculation can be extremely tricky. Our speaker will share her expertise and best practices for managing these calculations.
Penalties for overtime violations can be severe with the possibility of fines, imprisonment or both! Add civil suits to the mix and the results can be devastating to any business, no matter how large or small. Just to keep it interesting, most states use the same definition to calculate overtime as the FLSA does. So, even one, single error can earn you double the penalties.
HR Webianr: OSHA Reporting and Employee Record-KeepingAscentis
On January 24, 2019, during the longest partial shutdown of the U.S. federal government in history, US Labor Secretary Alexander Acosta issued a rollback of 2016 OSHA regulations which would have required electronic reporting of key information relating to workplace injuries on OSHA Forms 300 and 301, on the basis that such reporting would "violate the privacy of individual employees." With the annual OSHA 300A reporting deadline of March 2, 2019 fast approaching, which health and safety recordkeeping and reporting requirements remain for employers of various sizes, and how can we best comply with them?
HR Webinar: Immigration Changes and the Impact to Employers: 2018-2019Ascentis
It's not a government secret: The current administration is interested to change many elements of immigration policy and has a demonstrated preference that every job in the US that can possibly be filled by an American citizen, is. Yet despite one of the most full-throated verbal battles on Capitol Hill in recent memory (complete with a record government shutdown of 35 days), the Reconciliation Bills that finally got signed had virtually no changes to employment law or employer immigrant-status policy. E-Verify mandates continue to be controlled at the state level, with no nationwide mandate. So far, the primary changes in work visa and immigration policy have been via Executive Action, and in this session, we'll review the substantial movement on that front.
HR compliance update is essential for keeping up with ever-changing laws and regulations. Start 2020 confident you can handle the questions from supervisors, employees, and corporate leaders about employment law changes.
Payroll Webinar: A to Z of Garnishments Part 1Ascentis
In this three part series on the proper handling and processing of garnishments we will discussed the rules, regulations and requirements as they apply to withholding and paying child support, tax levies, creditor garnishments and others.
In Part 1 we focus on Child Support. Payroll departments must know both the federal laws and the state laws and must determine which one applies to the child support withholding order. In addition to these laws and regulations, the federal rules now require that a standard Income Withholding Order (IWO) be used for all child support withholding garnishments. This webinar will review this form and its requirements. And although the IWO can include all the information necessary to comply with the order, employers must familiarize themselves with both federal and state regulations to avoid penalties and liabilities. Withholding monies for child support is not the only requirement that applies to providing for a child, medical support orders are required to be process by payroll as well. And these orders have their own rules and regulations on both the federal and state level.
HR Webinar: The First 100 Days: Changes Employers Should be Aware ofAscentis
April 30, 2021 is the end of the first 100 days of the new Biden Administration. Not only did we have a change of party in the White House, but for the first time since 2011 we are also experiencing single party control of the House of Representatives, Senate and Presidency.
From vaccine logistics to small business relief, from minimum wage to gender pay equity, and from immigration reform to health care policy, political analysts expected big changes from the new Administration. In this session, we’ll review reality against expectations, and the HR technology implications for the change to come.
HR Webinar: The New Consolidated Appropriations Act of 2021: What HR Pros Mus...Ascentis
On December 27, 2020, the President signed H.R. 133, the "Consolidated Appropriations Act of 2021". This omnibus law includes the much anticipated and long-awaited COVID Relief Bill, with many of the new provisions taking effect immediately. Weighing in at a "mere" 5,593 pages, the new law renews or extends most of the tax relief programs available to employers under both the FFCRA and the CARES Act. The renewed Paycheck Protection Program, funded with $284.45 billion in new federal spending, is expected to see new lending the week of January 11, 2021, with a number of changes in response to prior program criticisms. Join us at this webinar to review the many provisions of CAA'21 which will impact Human Capital Management.
Payroll Webinar: The A to Z of Payroll Garnishments Part 2Ascentis
Tax levies and creditor garnishments can be some of the most complex tasks required of any payroll department. Payroll must understand all the laws that apply towards processing these types of garnishments backwards and forwards. It is sometimes even up to the payroll department to catch and correct any errors that have been made by anyone else along the way!
Precise and accurate compliance with garnishment regulation can help to reduce or eliminate the emotional and financial toll that can result from these unfortunate situations as well stave off any penalties that may result if processed incorrectly.
This webinar concentrates on processing garnishments, other than child support, in the payroll department. We’ll cover the federal rules for creditor garnishments, the IRS rules for federal tax levies, the various aspects of state tax levies, the key points for processing state creditor garnishments, how to handle voluntary wage assignments like payday loans and student loans. And that’s not all – we’ll also review the IRS Form 668-W.
Payroll Webinar: Paying Overtime Under the FLSA: Part 2Ascentis
This is the second of a two-part webinar that will help you better understand the requirements and procedures involved in overtime calculation. Calculating overtime pay for nonexempt employees sounds so simple. But not so fast. The truth is that overtime rules and the mathematics required to arrive at the correct calculation can be extremely tricky. Our speaker will share her expertise and best practices for managing these calculations.
Penalties for overtime violations can be severe with the possibility of fines, imprisonment or both! Add civil suits to the mix and the results can be devastating to any business, no matter how large or small. Just to keep it interesting, most states use the same definition to calculate overtime as the FLSA does. So, even one, single error can earn you double the penalties.
HR Webianr: OSHA Reporting and Employee Record-KeepingAscentis
On January 24, 2019, during the longest partial shutdown of the U.S. federal government in history, US Labor Secretary Alexander Acosta issued a rollback of 2016 OSHA regulations which would have required electronic reporting of key information relating to workplace injuries on OSHA Forms 300 and 301, on the basis that such reporting would "violate the privacy of individual employees." With the annual OSHA 300A reporting deadline of March 2, 2019 fast approaching, which health and safety recordkeeping and reporting requirements remain for employers of various sizes, and how can we best comply with them?
HR Webinar: Immigration Changes and the Impact to Employers: 2018-2019Ascentis
It's not a government secret: The current administration is interested to change many elements of immigration policy and has a demonstrated preference that every job in the US that can possibly be filled by an American citizen, is. Yet despite one of the most full-throated verbal battles on Capitol Hill in recent memory (complete with a record government shutdown of 35 days), the Reconciliation Bills that finally got signed had virtually no changes to employment law or employer immigrant-status policy. E-Verify mandates continue to be controlled at the state level, with no nationwide mandate. So far, the primary changes in work visa and immigration policy have been via Executive Action, and in this session, we'll review the substantial movement on that front.
HR compliance update is essential for keeping up with ever-changing laws and regulations. Start 2020 confident you can handle the questions from supervisors, employees, and corporate leaders about employment law changes.
Payroll Webinar: A to Z of Garnishments Part 1Ascentis
In this three part series on the proper handling and processing of garnishments we will discussed the rules, regulations and requirements as they apply to withholding and paying child support, tax levies, creditor garnishments and others.
In Part 1 we focus on Child Support. Payroll departments must know both the federal laws and the state laws and must determine which one applies to the child support withholding order. In addition to these laws and regulations, the federal rules now require that a standard Income Withholding Order (IWO) be used for all child support withholding garnishments. This webinar will review this form and its requirements. And although the IWO can include all the information necessary to comply with the order, employers must familiarize themselves with both federal and state regulations to avoid penalties and liabilities. Withholding monies for child support is not the only requirement that applies to providing for a child, medical support orders are required to be process by payroll as well. And these orders have their own rules and regulations on both the federal and state level.
HR Webinar: The First 100 Days: Changes Employers Should be Aware ofAscentis
April 30, 2021 is the end of the first 100 days of the new Biden Administration. Not only did we have a change of party in the White House, but for the first time since 2011 we are also experiencing single party control of the House of Representatives, Senate and Presidency.
From vaccine logistics to small business relief, from minimum wage to gender pay equity, and from immigration reform to health care policy, political analysts expected big changes from the new Administration. In this session, we’ll review reality against expectations, and the HR technology implications for the change to come.
HR Webinar: Ho, Ho, Ho My Goodness: Compliance Review for Year-End 2019Ascentis
We, in HR, have some unique holiday traditions. Sometime between the turkey and cranberries, and the mistletoe and gift wrapping, our thoughts turn to compliance, and how our responsibilities may be changing at the first of the coming year. In this session, we will review the rather impressive list of HR, Benefits and Payroll-related changes coming our way in January 2020.
We hope to see you there! Stay tuned for more accredited session invitations.
Payroll Webinar: Payroll Tax Nexus 2021: Impacts on Organizations as a Result...Ascentis
This session will explore the U.S. payroll tax impact to employers and employees in response to the increase in telework as a result of the COVID pandemic. Specific areas covered will include employer “nexus” with respect to withholding and reporting requirements related to those employees working remotely, potential state and local employment tax authority audit activity, strategies to consider in go-forward policy development and organizational hurdles in compliance as we move forward through 2021 and beyond.
Payroll Webinar: The Essentials for Third Party Sick Pay in 2020Ascentis
This webinar discusses the proper taxation and reporting of the fringe benefit known as third party sick pay. It discusses what is and is not third party sick pay, how the taxation is affected by the status of the provider (is or is not the employer’s agent), when this type of payment is taxable and/or reportable and who is responsible for this taxation and reporting.
Payroll Webinar: What You Need to Know about Benefits TaxationAscentis
You will learn the payroll department’s responsibilities pertaining to the set-up of employee benefits, including retirement, health and welfare and other benefits. You will learn what payroll department staff need to know when tax withholding needs to occur and how to communicate the tax withholding effectively to employees. Learn how to be proactive on employee taxation issues with management and prevent surprises.
HR Webinar: 2021 Compliance & Employment Law UpdateAscentis
2020 was nuts with employment laws changing rapidly so quickly to handle the COVID-19 pandemic. 2021 has no plans to slow down with new laws out of Congress and state legislatures contemplating higher minimum wages, paid leaves, additional protections against discrimination and harassment, and shifting priorities at federal agencies. With hopes of coming out of the pandemic by year’s end, HR professionals in all industries are preparing for the next wave of regulations affecting every industry.
HR Webinar: Benefits Update: 2020 Open Enrollment ConsiderationsAscentis
As we enter the busy Open Enrollment season for 2020 coverage, as a professional community, we face more uncertainty than in any year in recent memory. While the ACA still governs the design and administration rules of most healthcare plans, exceptions are now available for some employers. The individual mandate is effectively repealed, impacting both employee plan selection behavior and ACA reporting requirements. The relatively simple and straightforward subject of Health Reimbursement Accounts (HRAs) has morphed into a complex assortment of financial vehicles (QSEHRAs, ICHRAs, EBHRAs). And as Wellness Programs are gaining near-universal popularity, some big-name employers are in the news for toeing the line of the design rules for these plans. In this session, we'll review some key and late-breaking developments benefits professionals need to know!
Join Jim Paille as he talks about payroll tax compliance going into the new year. In this session, you will understand the latest tax reform items that affect payroll. He will cover new IRS initiatives to be mindful of entering 2021. Then, Jim will discuss topics related to the 2020-2021 W-4’s impact at both the federal and state levels. Finally, he will cover some tips you can leverage to make your year-end processing more efficient and effective.
Payroll Webinar: W-2’s vs. 1099’s: Understanding Who Should be an Independent...Ascentis
This webinar examines how the common law rule is used to determine worker status and which three requirements are used to correctly classify a worker as an independent contractor along with the requirements for when a worker must be classified as an employee. Misclassifying employees and independent contractors are getting more costly by the day. With federal and state agencies joining forces to combat misclassification, fines and penalties have skyrocketed. And every day the misclassification continues the penalties mount up and up until this ticking time bomb finally explodes! Find out how to defuse that ticking bomb by joining renowned payroll expert Vicki M. Lambert, CPP for this information packed webinar!
Payroll Webinar: The A to Z of Payroll Garnishments Part 3Ascentis
In parts two and three of the A to Z of Payroll Garnishments we discussed the legal aspects of garnishments, now in our third and final chapter we will turn our attention to the best practices for processing the garnishments within the payroll department.
We will apply our learnings and review examples of calculating all types of garnishments, including how to prorate when an employee has two or more child support withholding orders and not enough disposable income to cover both, the calculations for a federal tax levy, what to do if the employee has a creditor garnishment and a child support withholding order and more!
Payroll Webinar: Going Paperless in PayrollAscentis
Getting away from paper use in business is both good for the environment and the company’s bottom line! So finding ways to eliminate paper use in the payroll department is something every business should consider. Finding the right methods to decrease or eliminate paper in your day-to-day payroll operations while ensuring that proper compliance requirements are met can be done in any department if you know how!
Payroll Webinar: Tax Levies and Creditor Garnishments: What Payroll Must Know...Ascentis
This webinar concentrates on processing garnishments in the payroll department other than child support. It covers the federal rules for creditor garnishments, the IRS rules for federal tax levies, the various aspects of state tax levies, the key points for processing state creditor garnishments, how to handle voluntary wage assignments such as payday loans and student loans. It includes best practices for reconciling and processing the garnishments in the payroll department. Sample memos for communicating with the employee concerning garnishments are included. The IRS Form 668-W is reviewed.
Payroll Webinar: Untangling Multi State Payroll Reporting ComplexitiesAscentis
Almost all states require employers to withhold tax from employee wages earned for work performed in that state, even for nonresidents. As a starting point, the default rule of state income tax withholding is to withhold income tax for the state in which services are performed (the work state). But what happens when the employee lives and works in different states. What happens when the individual works in multiple states? This course will explore the obligations to payroll reporting for state purposes including exception cases with state reciprocity and convenience of the employer states. The course will look to “untangle” the complexities around when and how to report to non-resident states and when to withhold and remit state and local taxes.
Payroll Webinar: Wage and Hour Compliance in 2021Ascentis
This webinar concentrates on federal and state wage and hour requirements that must be followed in the payroll department. Areas of discussion include calculating overtime, travel time, minimum wage, posting requirements, meal and rest periods, how often an employee must be paid and by what method and paying terminated employees.
HR Webinar: Employee vs. Contractor: Changes That Will Impact All EmployersAscentis
Although the pandemic-related recession had a brief downward impact on gig workers overall, the trend is clear: being your own boss is a concept gaining popularity at an impressive rate. The overall number of Americans classifying themselves as freelancers rose from 53 million to 59 million from 2014 to 2020. And even the core classification of self-employed individuals (incorporated or not) has risen by 17 percent in just one year – from 8.221 million in April, 2020, to 9.651 million in April, 2021, according to the Bureau of Labor Statistics.
The rapid growth in the ranks of independent contractors has naturally spurred greater interest in the regulations surrounding worker classification – both in terms of the loss of benefits and protections for those leaving traditional employment, and the potential for abuse of the worker classification process by employers.
During the last year, the states have been brewing up their own changes in employment classification laws, led by California’s AB 5, which was passed, then repealed and replaced with AB 2257. At the federal level, with the transition to single-party control in the House, Senate (barely) and Presidency, the Protecting the Right to Organize (“PRO”) Act (H.R. 842) is making its way through Congress, and may even find a home inside the massive infrastructure bill now being debated on Capitol Hill. The PRO Act, as currently written, would include the most comprehensive amendment to the terms “employee,” “employer,” and “supervisor,” since the Fair Labor Standards Act of 1938 became law.
So how will all of these convergent changes settle out? And most importantly, how can employers plan for the expected changes on this contentious topic?
Affordable Care Act Reporting Requirements for 2015 [Webinar Slides]Sikich LLP
Generally speaking, an employer will not have any reporting requirement if it has fewer than 50 full-time and full-time equivalent employees in its controlled group and it sponsors a fully insured medical plan. All other employers will have at least some reporting. This appears to include employers with 50 to 99 employees for 2015 – even though the employer-shared responsibility requirement has been delayed until 2016 for most employers in this group, reporting is still needed to help determine whether individual employees owe penalties or are eligible for premium subsidies.
The bad guys are trying to steal your information! It seems there is another story on the news every day about large security breaches and the potential exposure of private, personal data. During this hour, Sleuthing Trainees will learn what the fraudsters are looking for, how they are gaining access to it and which employee populations are most at risk. This course, as well as the fortitude of the Sleuthing Graduates, have the potential to prevent millions in future payroll fraud losses.
Independent Contractor or Employee: Avoiding the Game of Guess Whobenefitexpress
Uber is in the news for a multimillion dollar settlement following a dispute over whether their drivers are employees or independent contractors, and they aren’t the only ones. Misclassifying an employee as an independent contractor is one of the costliest mistakes an employer can make.
Sort out which your employees are and learn your options for reclassifying workers in the webinar you literally can’t afford to miss.
Payroll Webinar: The A to Z of Garnishments Part 2Ascentis
Tax levies and creditor garnishments can be some of the most complex tasks required of any payroll department. If garnishments are not handled correctly, you may find yourself facing situations that become extremely costly both financially and emotionally. Courts, federal and state regulations, bureaucracies, lawyers and a multitude of other factors can complicate even the most basic procedures. Add in the emotional turmoil that often accompanies garnishment orders and even small errors can become major disasters.
The reality is that all of the people and entities involved tax levies and other types of creditor garnishments expect action from the payroll department. Payroll must understand all the laws that apply towards processing these types of garnishments backwards and forwards. It is sometimes even up to the payroll department to catch and correct any errors that have been made by anyone else along the way! Precise and accurate compliance with garnishment regulation can help to reduce or eliminate the emotional and financial toll that can result from these unfortunate situations as well stave off any penalties that may result if processed incorrectly
HR Webinar: The Affordable Care Act Turns 10 Years Old: Where to From Here?Ascentis
Happy Birthday, ACA! Ten years ago, on March 23, 2010, the ACA was signed into law. Adding an unprecedented level of consumer protections and minimum quality standards to the health insurance Americans use, the law was and remains controversial to this day. In fact, the rate of uninsured nonelderly Americans dropped from a high of 17.8% in 2010, to 10.0% in 2016. The cancelation of the individual mandate, among other factors, has started to reverse that trend, with increases in the uninsured rates in 2017 and 2018. As the ACA celebrates its tenth birthday, it has something else to celebrate: its highest approval rate since public opinion polls began tracking it: 55% favorable opinion vs. just 37% unfavorable opinion.
As an HR professional, always busy with a hundred other people priorities at your company, it is hard to keep up with the ever-changing laws in the health insurance industry, and specifically, the ACA. With the law predicted to head to the Supreme Court soon for the third review of its fundamental constitutionality, receiving real-time updates becomes even more important. See what has changed in the ACA, looking at where it started to where it is now in this webinar!
HR Webinar: Ho, Ho, Ho My Goodness: Compliance Review for Year-End 2019Ascentis
We, in HR, have some unique holiday traditions. Sometime between the turkey and cranberries, and the mistletoe and gift wrapping, our thoughts turn to compliance, and how our responsibilities may be changing at the first of the coming year. In this session, we will review the rather impressive list of HR, Benefits and Payroll-related changes coming our way in January 2020.
We hope to see you there! Stay tuned for more accredited session invitations.
Payroll Webinar: Payroll Tax Nexus 2021: Impacts on Organizations as a Result...Ascentis
This session will explore the U.S. payroll tax impact to employers and employees in response to the increase in telework as a result of the COVID pandemic. Specific areas covered will include employer “nexus” with respect to withholding and reporting requirements related to those employees working remotely, potential state and local employment tax authority audit activity, strategies to consider in go-forward policy development and organizational hurdles in compliance as we move forward through 2021 and beyond.
Payroll Webinar: The Essentials for Third Party Sick Pay in 2020Ascentis
This webinar discusses the proper taxation and reporting of the fringe benefit known as third party sick pay. It discusses what is and is not third party sick pay, how the taxation is affected by the status of the provider (is or is not the employer’s agent), when this type of payment is taxable and/or reportable and who is responsible for this taxation and reporting.
Payroll Webinar: What You Need to Know about Benefits TaxationAscentis
You will learn the payroll department’s responsibilities pertaining to the set-up of employee benefits, including retirement, health and welfare and other benefits. You will learn what payroll department staff need to know when tax withholding needs to occur and how to communicate the tax withholding effectively to employees. Learn how to be proactive on employee taxation issues with management and prevent surprises.
HR Webinar: 2021 Compliance & Employment Law UpdateAscentis
2020 was nuts with employment laws changing rapidly so quickly to handle the COVID-19 pandemic. 2021 has no plans to slow down with new laws out of Congress and state legislatures contemplating higher minimum wages, paid leaves, additional protections against discrimination and harassment, and shifting priorities at federal agencies. With hopes of coming out of the pandemic by year’s end, HR professionals in all industries are preparing for the next wave of regulations affecting every industry.
HR Webinar: Benefits Update: 2020 Open Enrollment ConsiderationsAscentis
As we enter the busy Open Enrollment season for 2020 coverage, as a professional community, we face more uncertainty than in any year in recent memory. While the ACA still governs the design and administration rules of most healthcare plans, exceptions are now available for some employers. The individual mandate is effectively repealed, impacting both employee plan selection behavior and ACA reporting requirements. The relatively simple and straightforward subject of Health Reimbursement Accounts (HRAs) has morphed into a complex assortment of financial vehicles (QSEHRAs, ICHRAs, EBHRAs). And as Wellness Programs are gaining near-universal popularity, some big-name employers are in the news for toeing the line of the design rules for these plans. In this session, we'll review some key and late-breaking developments benefits professionals need to know!
Join Jim Paille as he talks about payroll tax compliance going into the new year. In this session, you will understand the latest tax reform items that affect payroll. He will cover new IRS initiatives to be mindful of entering 2021. Then, Jim will discuss topics related to the 2020-2021 W-4’s impact at both the federal and state levels. Finally, he will cover some tips you can leverage to make your year-end processing more efficient and effective.
Payroll Webinar: W-2’s vs. 1099’s: Understanding Who Should be an Independent...Ascentis
This webinar examines how the common law rule is used to determine worker status and which three requirements are used to correctly classify a worker as an independent contractor along with the requirements for when a worker must be classified as an employee. Misclassifying employees and independent contractors are getting more costly by the day. With federal and state agencies joining forces to combat misclassification, fines and penalties have skyrocketed. And every day the misclassification continues the penalties mount up and up until this ticking time bomb finally explodes! Find out how to defuse that ticking bomb by joining renowned payroll expert Vicki M. Lambert, CPP for this information packed webinar!
Payroll Webinar: The A to Z of Payroll Garnishments Part 3Ascentis
In parts two and three of the A to Z of Payroll Garnishments we discussed the legal aspects of garnishments, now in our third and final chapter we will turn our attention to the best practices for processing the garnishments within the payroll department.
We will apply our learnings and review examples of calculating all types of garnishments, including how to prorate when an employee has two or more child support withholding orders and not enough disposable income to cover both, the calculations for a federal tax levy, what to do if the employee has a creditor garnishment and a child support withholding order and more!
Payroll Webinar: Going Paperless in PayrollAscentis
Getting away from paper use in business is both good for the environment and the company’s bottom line! So finding ways to eliminate paper use in the payroll department is something every business should consider. Finding the right methods to decrease or eliminate paper in your day-to-day payroll operations while ensuring that proper compliance requirements are met can be done in any department if you know how!
Payroll Webinar: Tax Levies and Creditor Garnishments: What Payroll Must Know...Ascentis
This webinar concentrates on processing garnishments in the payroll department other than child support. It covers the federal rules for creditor garnishments, the IRS rules for federal tax levies, the various aspects of state tax levies, the key points for processing state creditor garnishments, how to handle voluntary wage assignments such as payday loans and student loans. It includes best practices for reconciling and processing the garnishments in the payroll department. Sample memos for communicating with the employee concerning garnishments are included. The IRS Form 668-W is reviewed.
Payroll Webinar: Untangling Multi State Payroll Reporting ComplexitiesAscentis
Almost all states require employers to withhold tax from employee wages earned for work performed in that state, even for nonresidents. As a starting point, the default rule of state income tax withholding is to withhold income tax for the state in which services are performed (the work state). But what happens when the employee lives and works in different states. What happens when the individual works in multiple states? This course will explore the obligations to payroll reporting for state purposes including exception cases with state reciprocity and convenience of the employer states. The course will look to “untangle” the complexities around when and how to report to non-resident states and when to withhold and remit state and local taxes.
Payroll Webinar: Wage and Hour Compliance in 2021Ascentis
This webinar concentrates on federal and state wage and hour requirements that must be followed in the payroll department. Areas of discussion include calculating overtime, travel time, minimum wage, posting requirements, meal and rest periods, how often an employee must be paid and by what method and paying terminated employees.
HR Webinar: Employee vs. Contractor: Changes That Will Impact All EmployersAscentis
Although the pandemic-related recession had a brief downward impact on gig workers overall, the trend is clear: being your own boss is a concept gaining popularity at an impressive rate. The overall number of Americans classifying themselves as freelancers rose from 53 million to 59 million from 2014 to 2020. And even the core classification of self-employed individuals (incorporated or not) has risen by 17 percent in just one year – from 8.221 million in April, 2020, to 9.651 million in April, 2021, according to the Bureau of Labor Statistics.
The rapid growth in the ranks of independent contractors has naturally spurred greater interest in the regulations surrounding worker classification – both in terms of the loss of benefits and protections for those leaving traditional employment, and the potential for abuse of the worker classification process by employers.
During the last year, the states have been brewing up their own changes in employment classification laws, led by California’s AB 5, which was passed, then repealed and replaced with AB 2257. At the federal level, with the transition to single-party control in the House, Senate (barely) and Presidency, the Protecting the Right to Organize (“PRO”) Act (H.R. 842) is making its way through Congress, and may even find a home inside the massive infrastructure bill now being debated on Capitol Hill. The PRO Act, as currently written, would include the most comprehensive amendment to the terms “employee,” “employer,” and “supervisor,” since the Fair Labor Standards Act of 1938 became law.
So how will all of these convergent changes settle out? And most importantly, how can employers plan for the expected changes on this contentious topic?
Affordable Care Act Reporting Requirements for 2015 [Webinar Slides]Sikich LLP
Generally speaking, an employer will not have any reporting requirement if it has fewer than 50 full-time and full-time equivalent employees in its controlled group and it sponsors a fully insured medical plan. All other employers will have at least some reporting. This appears to include employers with 50 to 99 employees for 2015 – even though the employer-shared responsibility requirement has been delayed until 2016 for most employers in this group, reporting is still needed to help determine whether individual employees owe penalties or are eligible for premium subsidies.
The bad guys are trying to steal your information! It seems there is another story on the news every day about large security breaches and the potential exposure of private, personal data. During this hour, Sleuthing Trainees will learn what the fraudsters are looking for, how they are gaining access to it and which employee populations are most at risk. This course, as well as the fortitude of the Sleuthing Graduates, have the potential to prevent millions in future payroll fraud losses.
Independent Contractor or Employee: Avoiding the Game of Guess Whobenefitexpress
Uber is in the news for a multimillion dollar settlement following a dispute over whether their drivers are employees or independent contractors, and they aren’t the only ones. Misclassifying an employee as an independent contractor is one of the costliest mistakes an employer can make.
Sort out which your employees are and learn your options for reclassifying workers in the webinar you literally can’t afford to miss.
Payroll Webinar: The A to Z of Garnishments Part 2Ascentis
Tax levies and creditor garnishments can be some of the most complex tasks required of any payroll department. If garnishments are not handled correctly, you may find yourself facing situations that become extremely costly both financially and emotionally. Courts, federal and state regulations, bureaucracies, lawyers and a multitude of other factors can complicate even the most basic procedures. Add in the emotional turmoil that often accompanies garnishment orders and even small errors can become major disasters.
The reality is that all of the people and entities involved tax levies and other types of creditor garnishments expect action from the payroll department. Payroll must understand all the laws that apply towards processing these types of garnishments backwards and forwards. It is sometimes even up to the payroll department to catch and correct any errors that have been made by anyone else along the way! Precise and accurate compliance with garnishment regulation can help to reduce or eliminate the emotional and financial toll that can result from these unfortunate situations as well stave off any penalties that may result if processed incorrectly
HR Webinar: The Affordable Care Act Turns 10 Years Old: Where to From Here?Ascentis
Happy Birthday, ACA! Ten years ago, on March 23, 2010, the ACA was signed into law. Adding an unprecedented level of consumer protections and minimum quality standards to the health insurance Americans use, the law was and remains controversial to this day. In fact, the rate of uninsured nonelderly Americans dropped from a high of 17.8% in 2010, to 10.0% in 2016. The cancelation of the individual mandate, among other factors, has started to reverse that trend, with increases in the uninsured rates in 2017 and 2018. As the ACA celebrates its tenth birthday, it has something else to celebrate: its highest approval rate since public opinion polls began tracking it: 55% favorable opinion vs. just 37% unfavorable opinion.
As an HR professional, always busy with a hundred other people priorities at your company, it is hard to keep up with the ever-changing laws in the health insurance industry, and specifically, the ACA. With the law predicted to head to the Supreme Court soon for the third review of its fundamental constitutionality, receiving real-time updates becomes even more important. See what has changed in the ACA, looking at where it started to where it is now in this webinar!
How to Avoid a Head-on Collision with The Cadillac TaxBill Conlan
The Webinar addressed what state and local governments need to know about how other provisions of reform that take effect beginning in 2010 will complicate the challenge of meeting the thresholds – and that the time to begin planning for the Cadillac tax is now.
The presenters provided details on the Cadillac tax and factors that complicate compliance with premium thresholds such as the removal of traditional coverage limits, the increase in the dependent eligibility age, additional fees, mental health parity and the estimated 16 million more Americans who will receive Medicaid.
The Recovery 101 presentation given on May 18, 2009 in Marlette, MI. Hosted by the Mid Michigan Innovation Team in collaboration with Corporation for a Skilled Workforce and Thumbworks. Presenters include representatives from Corporation for a Skilled Workforce, the Michigan Department of Energy, Labor and Economic Growth, the Michigan Economic Development Corporation, and the National Employment Law Project.
This webinar continues the COVID-19 Insights webinar series. Topics include the loans and grants being offered by the government, how they differ, and how they may benefit your practice, including SBA Loans and Grants, HHS Grants, Medicare Advance/Accelerated Payments, and Telehealth Funding. The webinar also goes over the CareOptimize technology developed to assist with streamlining COVID-19 monitoring and reporting.
Charles Blahous Presentation for Mercatus Center SSDI Panel Mercatus Center
The Social Security Disability Insurance (DI) trust fund’s projected 2016 depletion will require Congress to act soon to prevent large, sudden benefit cuts.
Experts on both sides of the aisle have noted that a “quick fix” of simply shifting payroll taxes from Social Security’s much larger retirement trust fund (OASI) into DI, without further reform, could cost Congress its last chance to solve Social Security’s broader financing problems before it is too late. What more responsible reform options are available?
The Mercatus Center and the Committee for a Responsible Federal Budget hosted a discussion on May 12 on how best to respond to SSDI’s financing crisis.
Employers Healthcare Reform Overview and TimelineThe comprehensive nature of this recently passed reform includes benefit re-design, increased administrative compliance costs, eligibility rule restructuring, increased taxes and health insurance exchange management. Employers need to streamline their operations to meet ...compliance requirements set by the legislation and their employer\’s workforce size.
NY Wage Parity Compliance and Your Home Health Care Business.
Crucial information for Home Care and Home Health Aid (HHA) Companies who want to be in compliance with the NY Wage Parity law.
Congress Gave Hospitals and Providers $100B in the Coronavirus Stimulus Packa...Health Catalyst
The COVID-19 pandemic has caused immense financial strain on healthcare systems across the nation. As a result, Congress passed a $3 trillion stimulus package that includes $100 billion for hospitals and other healthcare providers. While this relief for healthcare organizations is much needed, it can also add confusion. What can organizations use these stimulus funds for? What are the risks and compliance requirements?
Bobbi Brown, Senior Vice President of Professional Services, and Dan Orenstein, General Counsel at Health Catalyst, discuss answers to these questions and more. With over thirty years of experience in healthcare financial planning and analysis, Bobbi shares her unique perspective on the stimulus package and how providers can use these funds in their recovery planning. Dan has over two decades of legal experience in healthcare and discusses the specifics of compliance requirements.
In this webinar, Bobbi and Dan address the following:
-Explain significant sections of the four laws passed, including the CARES Act.
-Review program details of the Provider Relief Fund.
-Explore the use of the funds and compliance with terms and conditions.
-Discuss policy changes to better prepare for healthcare emergencies.
CARES Act Update - What you Need to Know Heading into 2021Citrin Cooperman
During this webinar we focused on the interplay between the different CARES Act provisions, in particular PPP loans, Provider Relief Funds, and Medicare Advanced Payments, and how they may impact 2020 year-end planning and 2021 forecasting.
Health Care Reform and the Basics of BenefitsBeyondPay
This webinar will answer questions you have about the insurance you offer employees. It covers all things ACA and benefits administration, including COBRA, ERISSA, and HIPAA. Don't miss the latest ACA updates in 2016 to find out how they will affect you and your company.
Similar to HR Webinar: The American Rescue Plan Act of 2021: New Employer Opportunities and Obligations (20)
Payroll Webinar: Time & Attendance Payroll FraudAscentis
Have you ever had to clock in or out from work on a time clock? What type of time clock was it? Did you have to use a punch card? Did you have to use a fob or card key? Did you have to use your fingerprint or retina?
The evolution of the time clock and the various methods by which an employee is able to indicate the beginning and end of periods of time worked was based on the evolution of time and attendance fraud. In this hour, the different methods by which an employee might abuse a time and attendance system will be identified and discussed, as well as best practices for prevention.
HR Webinar: Leading Hourly Workforce Transformation in a Post-Pandemic WorldAscentis
As we continue to negotiate the impacts of Covid-19 on our society, the workplace has changed for good. And for hourly workers, and those who manage them, the shifts have been even more dramatic.
In order to meet the needs of this workforce that has changed forever, leaders must strategically develop their employment practices to ensure they're able to successfully attract, recruit, and retain the quality and tech-savvy talent that they need.
In this program, we'll explore five key strategies that are key to creating a workplace where the post-pandemic hourly workforce can grow and thrive. The new normal may still be unknown – but the good news is that companies can count on their hourly workforce to deliver for them, once they start responding to their needs.
HR Webinar: Gender Pay Equity: The Journey ContinuesAscentis
This presentation will review the implications of March 24, 2021, otherwise known as “Equal Pay Day,” the specific date this year when the average man in the United States could start work and earn the same amount by December 31 as the average woman, in the same job, who had worked all year long.
In recent years, gender pay equity has experienced a continuous sense of “one step forward; two steps back”. EEO-1 Component 2 reporting, as a tool for identifying specific regions, industries and organizations where this type of discrimination is most pronounced has arrived, departed, and is now poised to arrive again at HR professionals’ desks. Discussions about what it’s going to take to eradicate sexual harassment and gender-based discrimination in the workplace (the #MeToo movement) inevitably lead us to questions like: Is it “good enough” for employers to simply acknowledge the gender discrimination inherent in acts of sexual harassment? Or is it time to step past the words, and into action, and to focus on the steps we need to take to truly rectify the pay equity gap?
Regardless of what your company’s views and current efforts are, it’s also important that every HR professional be aware that the state, city or other local jurisdiction in which you operate may have gender-equalizing laws in place.
Payroll Webinar: Forms W-2/941/940 for 2021: The Information You Need to Know!Ascentis
It is a New Year! Are you and your payroll department ready? Join “The Payroll Advisor” Vicki M. Lambert, CPP as she helps you to understand the proper procedures for completion of Form W-2, Form 941 and Form 940 for 2021.
Payroll Webinar: Maximize Operational Efficiency with Your Workforce Manageme...Ascentis
Time and attendance has had quite the evolution over the years from the "clock in, clock out" mindset. It plays into a bigger workforce management strategy designed to help companies optimize workforce productivity on an individual and company-wide basis. In this webinar, we will talk about ways to improve your company's overall operational efficiency in leveraging data analytics that can be found through technology, like a time system. We will touch on methods of risk management and how your organization should be thinking about emerging compliance needs in relation to new work environments. Lastly, ideas around improving budget forecasting for ways to benefit the bottom line.
Join Ginnette Clark, VP of American Payroll Association, as she breaks down these workforce management strategies.
Payroll Webinar: Streamlining Payroll Operations and EfficienciesAscentis
Payroll is often the largest expense for a business and can be even more costly because of non-compliance, inefficient processes, lack of controls, and outdated technology. A missed deadline or incorrect tax filing can result in hefty fines and even jail time. Manual entry of HR/payroll records is time-consuming and prone to human error. Not having controls in place, whether you are a public or a private company, can increase the risk of fraud. Outdated technology can be complex and tends to add more administrative burden to HR/payroll teams, causing unwanted stress and frustration.
In this session we talk about the many ways that companies can stay compliant, streamline payroll operations, and optimize efficiency. We’ll share best practices and current trends to help improve your overall payroll operations and keep things running smoothly.
HR Webinar: 2021 Workplace and Compliance OutlookAscentis
In this webinar, we will explore the current hot issues surrounding the HR leader. We will touch on topics such as updated compliance responsibilities to be aware of, employee well-being, new employee demands, the hybrid workspace, and more. Tune in to hear Barbara Trumbly talk to what issues and new policies you should be aware of entering the new year.
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This year, the success of the USA in emerging from the COVID pandemic will largely depend on our effectiveness in administering a universal vaccination program to achieve the CDC's recommended 70-85% level needed to achieve herd immunity. While so far the federal and state governments have not assigned employers any significant responsibilities in supporting the vaccination program, many employers nevertheless want to help in some way, and need to know what options they have in doing so.
Payroll Webinar: Paying Overtime Under the FLSA Part 1Ascentis
This is the first of a two-part webinar that will help you better understand the sometimes confounding requirements and procedures involved in overtime calculation. Calculating overtime pay for nonexempt employees sounds so simple. Common folk lore says you simply count the hours the employee works beyond 40 hours a week. Then you multiply that by 1.5 times their hourly pay rate and you’re done right? Not so fast! The truth is that overtime rules and the mathematics required to arrive at the correct calculation can be extremely tricky.
Penalties for overtime violations can be severe with the possibility of fines, imprisonment or both! Add civil suits to the mix and the results can be devastating to any business no matter how large or small! And just to make it interesting, most states use the same definition to calculate overtime as the FLSA does. So one error can earn you double the penalties.
Payroll Webinar: Customer Service in PayrollAscentis
By establishing a customer service policy with a payroll twist, the manager creates an environment within the payroll department that focuses on increasing productivity and efficiency of the department rather than on the customer needs. However, this in turn actually allows the department to offer better service to its customers in the long run. It sets up when the department is available and when it is not. What it needs and when it needs it to ensure that all of its customers are paid on time and in compliance with all labor and tax laws.
Payroll Webinar: Understanding the 2020 W4Ascentis
As we approach a historic election in November, most experts agree: as a nation, we are at unprecedented levels of political division in this country. Given the recent activism of the executive and judicial branches of the federal government (if not the legislative), and increased levels of state and local activity as well, we in HR mostly “hunker down” and wait for the next mandate to roll out, wondering what impacts it will have on our HCM technology platforms. From minimum wage changes to enhanced EEO reporting, from gender pay equity issues making top news headlines to the question of where the Affordable Care Act will be a year from now, HR professionals need as much information as they can garner to be ready for potential change.
In this session, we’ll explore what impact pending legislation (of both the “blue” and “red” variety), recent court cases, and a possible change in control of the Presidency and/or the Senate could have on our professional lives as HR compliance officers.
Payroll Webinar: The A to Z of Garnishments Part 3Ascentis
We have discussed the legal aspect, now we need to turn our attention to the best practices for processing the garnishments within the payroll department. For example, how and when should payroll communicate with the employee concerning a garnishment? Should tracking reports be set up to ensure proper deductions and payments? These are just a few of the questions we will answer during this webinar.
Now that we have discussed the rules and regulations of Garnishments it is time to get down and do the math. In this webinar we will apply all that we learned in parts 1 and 2 by reviewing all types of examples of calculating garnishments. This will include how to prorate when an employee has two or more child support withholding orders and not enough disposable income to cover both; the proper calculations for a federal tax levy; what to do if the employee has a creditor garnishment and a child support withholding order and much, much more.
Payroll Webinar: Form W-2 for 2020: All You Need to KnowAscentis
The Form W-2 is one of the most important documents that payroll departments must process. This webinar covers the IRS Form W-2 for 2020. We examine the requirements for completing and filing the form including a box by box explanation. Best practices for completing and reconciling the form, handling duplicate requests from employees are also covered. When to use the correction Form W-2c is also discussed.
Payroll Webinar: Form 941 for 2020: What you Need to KnowAscentis
This webinar covers the IRS Form 941 and its accompanying Form Schedule B for 2020. It discusses what is new for the form in 2020 and covers the requirements for completing each form line by line. It includes the filing requirements and tips on reconciling and balancing the two forms.
Form 941 is the link between your payroll records and the IRS tax records. Proper administration of this vital form is critical if you want to avoid IRS Notices and the penalties and interest that accompany them. The Schedule B is also a crucial form for many employers. The IRS demands that the Form 941 and the Schedule B match to the penny…every single time…without fail!
It has always been a requirement that the Forms 941 be reconciled with the Forms W-2 prior to submitting each form. If the employer fails in this reconciliation, the IRS and Social Security Administration can both assess penalties! This reconciliation has become even more critical these past few years.
2. Organize. Humanize. Maximize.
2
Recruiting &
Onboarding
Talent
Management
HR &
Benefits
Payroll
Time &
Attendance
Ascentis
Ascentis provides:
• A-la-carte HR technology
• Industry-leading time & attendance
• Easy dashboards for actionable insights
• Unsurpassed support
30+ Years of experience growing with you as an
HR professional throughout unprecedented
change in the role of HR and expectations of
employees.
4. Organize. Humanize. Maximize.
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Housekeeping - How to earn credit
Stay on the webinar,
online for the
full 60 minutes
Be watching using
your unique URL
sent to you from
GoToWebcast
Program codes
delivered by email,
to registered email,
approximately 30 days
following today’s
session
6. Organize. Humanize. Maximize.
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Today’s Speaker
Bob Greene currently serves as Senior HR Industry Analyst at Ascentis.
Bob’s 43 years in the human capital management industry have been spent
in practitioner, consultant and vendor/partner roles. As practitioner, he
managed payroll for a 5,000-person bank in New Jersey. As consultant, he
spent 8 years advising customers in HRMS, and payroll and benefits system
design as well as acquisition strategies. Bob also built a strategic HCM
advisory practice for Xcelicor (later acquired by Deloitte Consulting.)
As vendor/partner, he has had prominent roles in sales support, marketing
and product management at several companies and currently Ascentis. Bob
has been a Contributing Editor for IHRIM's Workforce Solutions Review
journal, for the past eight years, and since 2020 has served as Co-Managing
Editor. His experience also includes two years as Adjunct Lecturer in HRIS
at Benedictine University in Lisle, Illinois. In addition to his 43 years of
experience, Bob also holds a BA in English from Rutgers University.
Bob Greene
7. Agenda
• Part I: General Provisions of Highest Interest to Your Employees
• Stimulus Payments
• Unemployment Compensation Enhancements, et. al.
• Other Individual Taxpayer Modifications
• Part II: Business Benefits Impacting HCM
• Paycheck Protection Program (PPP) “Round Two-and-a-Half!”
• Employee Retention Tax Credits (ERTC) Extended and Modified
• FFCRA Paid Leave Provisions - Extensions and Revisions
• Part III: Employee Benefits Impacting Provisions
• FIRE SALE on COBRA Premiums!
• ARPA Impact on ACA ESRP Penalty Exposure
• Part IV: Preview: Is OSHA About to “Drop the Hammer?”
• How Ascentis Can Help
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Disclaimer
• Legal advice
• A political opinion
• The “last word” on these topics!
This presentation is NOT:
Before Taking Any Actions
Before taking any actions on the information contained in
this or any other Ascentis presentation, employers should
review this material with their professional advisors.
This presentation is based on the latest published information available up to 24 hours
prior to its broadcast. This information is changing and being reinterpreted frequently.
Please check for updates before relying on this content.
11. High Level Overview of ARPA’21
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The American Rescue Plan Act of 2021…
• Was signed into law on March 11, 2021 (just seven days shy of the one-year
anniversary of the CARES Act being signed) as H.R. 1319.
• Takes 628 pages to document, with:
• 11 “titles” (each can be thought of as a “law within a law”)
• 39 “subtitles”
• $1.9 trillion in additional federal spending relating to COVID relief
• Includes taxpayer-facing benefits such as direct stimulus payments and
significantly enhanced unemployment benefits.
• The divisions of highest interest to employers will be:
• Title IX, Subtitle F, Sec. 9501: COBRA Coverage Premium Abatement
• Title IX, Subtitle G: Promoting Economic Security (extends many previous provisions)
12. FFCRA
(H.R.6201)
CARES Act
(H.R. 748)
PPP & HCEA
(H.R. 266)
PPPFA
(H.R. 7010)
CAA’21
(H.R. 133)
ARPA’21
(H.R. 1319)
A Single Year of COVID Relief Legislation – A Historical Timeline
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ARPA’21 Spending Brings Cumulative COVID Relief to ~ $7.00 trillion*…
* Depending upon the extent of successful PPP loan forgiveness, includes legislative, administrative, and federal reserve actions
13. ARPA’21 General Provisions – Stimulus Payments
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The Terms of the Additional Stimulus Payments
• Supplemental stimulus payments of $1,400 per taxpayer (up from $600) and $1,400 per
dependent child (up from $600), applied against a refundable 2021 tax credit.
• By classifying the amount this way, the payments are available for release immediately.
• Direct deposits and some checks has already been made/mailed.
• If taxpayers are not eligible for payments now based on 2020/2019 income, they may still qualify for the credit on their 2021
tax filings made in 2022, if their 2021 income falls below the specified threshold levels.
• Amounts are prorated from the previous $1,200 level:
• Full $600 payments are available for individuals with AGIs of less than $75,000, proration ends at $80,000,
reduced from the previous $87,000 level associated with the first check.
• Federal/state debt/obligations NOT ELIGIBLE for offset against these payments:
• Outstanding IRS/income tax debt
• Outstanding/past due student loan payments
• State income tax obligations
• Unemployment compensation repayments
• Outstanding/past due child support orders (this is the same as the previous $600 payment’s terms)
14. ARPA’21 General Provisions – Stimulus Payments
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Stimulus Payments – How They’ve Evolved
First Payment Second Payment Third Payment
Maximum Amount
(Per Adult) $1,200 $600 $1,400
Flat Amount
(Per Dependent) $500 (16 and younger) $600 (16 and younger) $1,400 (any age)
Income to Receive Maximum
Amount (Single/HOH/Joint) $75,000 / $112,500 / $150,000 $75,000 / $112,500 / $150,000 $75,000 / $112,500 / $150,000
Taxpayer Upper Limit
(Single/HOH/Joint) $100,000 / $146,000 / $198,000 $87,000 / $124,500 / $174,000 $80,000 / $120,000 / $160,000
Citizenship
Citizens and non-citizens with a
social security number
Citizens and non-citizens with a
social security number
Expanded to include mixed-status
families if one member has SSN
Date Approved March 27, 2020 December 27, 2020 March 11, 2021
First Payments Sent/
Final Payments Sent April 13, 2020 / Feb 16, 2021 Dec 29, 2020 / Feb 16, 2021 March 13. 2021 / Dec 31, 2021
Number of Payments Made/
Total Dollars Distributed >160MM / $270 billion >147MM / $142 billion TBD / TBD
Permissible Offsets Back child support ONLY None permitted None permitted
15. General Provisions – CARES Act Original UI Enhancements
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The CARES Act Provided for … Enhanced Unemployment Compensation
• The CARES Act authorized several important enhancements to state-
administered unemployment compensation (“UC”) programs, including:
• Pandemic Unemployment Assistance (PUA): Extension of UC to the self-employed and
so-called “gig economy” workers
• Waiver of the first week waiting period for benefits payments
• Establishment of an additional “short-term compensation” program for employees who have
had their hours reduced to avoid outright layoff. This represents the first ever funding of a
form of unemployment benefits for workers still working, but on a reduced schedule, and
• Pandemic Emergency Unemployment Compensation (PEUC): An additional 13 weeks of
benefits (Expired December 31, 2020.)
• Pandemic Unemployment Compensation (PUC): An addition of up to $600 per week in
enhanced benefits for a period of up to four months. (Expired July 31, 2020.)
• All of the above UC expansions (except the first bullet) required states to opt-in with modified
state/federal agreements, and all did, although it took several weeks.
16. General Provisions – CAA’21 Revised UI Enhancements
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CAA’21 Renewed but Modified That Enhanced Unemployment Compensation
• CAA’21 spent $286 billion for enhancements to state-administered
unemployment compensation (“UC”) programs, including:
• Pandemic Unemployment Assistance (PUA): Extension of UC to the self-employed and
so-called “gig economy” workers.
• Waiver of the first week waiting period for benefits payments (at the state’s option).
• The PUA was extended through March 14, 2021.
• Pandemic Emergency Unemployment Compensation (PEUC): An additional 11 weeks of
benefits through March 14, 2021, for those who had exhausted their state-level benefits.
• Eligible workers with PUA/PEUC time left as of March 14, 2021 could apply for “transition
benefits” for 3 additional weeks, through April 5, 2021.
• Pandemic Unemployment Compensation (PUC): Added $300 per week in enhanced
benefits (down from $600 under the CARES Act) through March 14, 2021 only.
17. General Provisions – ARPA’21 Revised UI Enhancements
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ARPA’21 Also Renewed and Modified That Enhanced Unemployment Compensation
• ARPA’21 spent $289 billion for enhancements to state-administered
unemployment compensation (“UC”) programs, including:
• Pandemic Unemployment Assistance (PUA): Extension of UC to the self-employed and
so-called “gig economy” workers.
• Waiver of the first week waiting period for benefits payments (at the state’s option) is now
fully reimbursed by the federal government, retroactive to December 31, 2020.
• The PUA was extended from a March 14, 2021 expiration to September 6, 2021.
• Pandemic Emergency Unemployment Compensation (PEUC): Expands the total number
of weeks of benefits from 24 to 53, and through September 6, 2021.
• Pandemic Unemployment Compensation (PUC): Extended $300 per week in enhanced
benefits (as modified by the CAA’21) through September 6, 2021.
• Exempts the first $10,200 in 2020 unemployment benefits per individual from federal income
tax for households with incomes below $150,000 per year. Joint return filers who each
received unemployment income exceeding $10,200 can benefit from a $20,400 income
exemption.
18. Other ARPA’21 Individual Taxpayer Provisions
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ARPA’21 Fundamentally Restructured Key Portions of the Tax Code…for Now
• Earned Income Tax Credit. For 2021 only, ARPA:
• …raises the maximum EITC for adults without children from $543 to $1,502.
• …allows taxpayers to use either 2019 or 2020 earned income for their EITC calculation, whichever results in the
larger credit.
• …lowers the age eligibility for the childless EITC from 25 to 19 and eliminates the upper age limit, which currently
bars the credit for childless people age 65 and older.
• …eliminates the rule that bars individuals who have children without social security numbers from claiming the
childless EITC and allows individuals who are separated from their spouses to claim the EITC on a separate return if
they live with their child for more than half of the year.
• Child Tax Credit. For 2021 only, ARPA:
• …increases the Child Tax Credit maximum amount from $2,000 to $3,000 per child, or $3,600 for children under age
6. The increase in the maximum amount begins to phase out at $150,000 in income for married couples, $112,500
for heads of households and $75,000 for other parents.
• …extends the credit to 17-year-olds. (Previous law included only 16 year-olds and under.)
• …makes the credit fully refundable, meaning the entire credit could be provided as a refund if it exceeds an
individual’s income tax liability, instead of partially refundable as under previous law. It also requires half of the credit
to be paid in advance by having the IRS send monthly payments to families from July 2021 to December 2021.
20. Paycheck Protection Program “Round Two”
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Forgivable Loans for Small Businesses – Now New and Improved!
Division N, Title III of the CAA’21 renews the “Paycheck Protection Program
(PPP Round Two).”
• The program is funded up to $284.45 billion, and is available ONLY to originate loans until March 31, 2021 or until funds are exhausted,
if earlier.
• The loan limit is $10 million per borrower (if this is the first PPP loan for the employer).
• The most attractive feature of the PPP? Up to 100% of the loan is forgivable (effectively, that portion of the loan is transformed into a
grant).
• Eligibility criteria for PPP loans begin with “first round” criteria, modified as follows:
Newly Eligible
• Certain 501(c)(6) organizations, (but see exceptions )
• Broadcast news organizations (NAICS 511110/5151)
• Housing coops (with 300 ee’s or less)
• Destination marketing orgs (with 300 ee’s or less)
• Businesses in bankruptcy
• Employers using the ERTC (but no wage double dipping)
Newly Ineligible
• 501(c)(6) organizations that are pro sports leagues,
lobbying groups or political campaigns
• Publicly traded companies (or controlled by members
of Congress/Executive Branch or their spouses)
• Employers not in operation on 2/15/2020
• Recipients of “Save our Stages” grants under this law.
21. Paycheck Protection Program “Round Two Point Five”
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Forgivable Loans for Small Businesses – Now New and Improved!
Title V, Sec. 5001 of the ARPA’21 adds funds and makes changes to the “Paycheck
Protection Program (PPP Round Two-Point-Five).”
• ARPA added $7.25 billion to the PPP fund “bucket” – a small amount because nearly half of the $284 billion of PPP funds from the CAA’21
remained to be lent at the time the bill was signed.
• The CAA’21 established March 31, 2021 as the application deadline (or until funds are exhausted, if earlier). A standalone bill
was signed by the President on March 30, “The PPP Extension Act of 2021” which extended the application deadline to May 31, 2021.
• The loan limit continues to be $10 million per borrower (if this is the first PPP loan for the employer).
• Eligibility criteria for PPP loans begin with “first round” and “second round” criteria, modified as follows:
Newly Eligible
• “additional covered nonprofit entities,” which are those not-for-profits listed in Sec. 501(c) of the Internal Revenue Code other
than 501(c)(3), 501(c)(4), 501(c)(6), or 501(c)(19) organizations, provided that:
• …the organization does not receive more than 15% of receipts from lobbying activities.
• …the lobbying activities do not comprise more than 15% of activities.
• …the cost of lobbying activities of the organization did not exceed $1 million during the most recent tax year ending prior to Feb. 15, 2020.
• …the organization employs not more than 300 employees.
22. The Paycheck Protection Program “Round Two”
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The PPP Gets a Very Rare Tax Treatment Exception (CAA’21)
Traditionally, the IRS does not permit “double-dipping” –
allowing the same dollar to receive two government financial
benefits.
• This traditional prohibition was well represented in last year’s rules surrounding the PPP, ERTC, and
the FFCRA-related paid leave tax credits, with most double-dipping prohibitions in place.
• The CAA’21 carves out a limited exception for the interaction of the ERTC and PPP loans, allowing
employers to take advantage of both programs, while still enforcing the prohibition on double-dipping.
• But the CAA’21 expressly permits employers to take tax deductions for valid employment
expenses paid with forgiven PPP loan dollars. For a corporation at the 21% corporate tax
rate, this amounts to 121% positive impact to the bottom line for each dollar so treated.
• This special tax provision only applies for loan dollars forgiven after December 27, 2020.
• [To see how unique this is, imagine for a moment that you purchased a new car for $30,000, paying $2,100 state
sales tax, bringing the total purchase to $32,100, then returned it within a day, received a full refund on every
dollar you paid, and the IRS still allowed you to take the $2,100 large purchase tax deduction on your annual
return!]
23. The Paycheck Protection Program “Round Two”
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23
Special Rules for “Second Draw” PPP Loans
Employers who already received a loan under the previous PPP
may apply for a “second round” loan, if they:
• Have fully spent out the proceeds from their first PPP loan by the date of their second round
disbursement
• Have no more than 300 employees (rather than the 500 employee limit applicable to first round
loans), or 300 employees per location for certain NAICS 72 hospitality organizations
• Have experienced, for any one or more quarters, a year-on-year decrease in gross receipts in
comparable quarters, of 25% or more (e.g., 1Q20 gross receipts at least 25% lower than 1Q19 gross
receipts…)
• Are limited to $2 million per entity, and $4 million aggregate to all members of a single corporate
group
• Have not been created or organized, nor have significant operations in the People’s Republic of
China or Special Administrative Region of Hong Kong, nor have directors who are residents of the
PRC.
24. The Paycheck Protection Program “Round Two”
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24
Calculating Eligible Loan Amounts (“Tweaked” from CARES Act)
The maximum loan amount is calculated as follows:
• 2.5 times the average total monthly payroll costs incurred in the one-year period before the loan is
made OR calendar year 2019 OR calendar year 2020;
• For hospitality second-draw borrowers (NAICS codes starting with 72), the limit is 3.5 times the
average total monthly payroll costs
OR
• For seasonal employers, average monthly payroll costs may be for any 12-week period from
2/15/2019 through 2/16/2020
OR
• A maximum of $10 million for a first-round borrower, $2 million for a second-round borrower.
25. The Paycheck Protection Program “Round Two”
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25
Eligible Payroll Spend for Proceeds (changes from original terms in purple)
What is INCLUDED in “payroll costs” under the PPP?
• Compensation (salary, wage, commission, or similar compensation, payment of cash tip)
• Payment for vacation, parental, family, medical, or sick leave
• Allowance for dismissal or separation
• Employer payments for all employee group insurance benefits, including medical, vision, dental, life,
disability
• Payment of any retirement benefit
• Payment of State or local tax assessed on the compensation of employees.
What is EXCLUDED in “payroll costs” under the PPP?
• Compensation per individual in excess of $100,000 annually (prorated for the applicable period)
• Withheld taxes such as Federal Income Tax Withholding and employer portion of federal taxes
• Compensation for employees with principal place of residence outside the United States
• Compensation for leave under any provision of the FFCRA (no “double-dipping”)
• Compensation to independent contractors
26. The Paycheck Protection Program “Round Two”
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26
Eligible Non-Payroll Spend for Proceeds (changes from original terms in purple)
What Non-Payroll Costs May PPP Proceeds Be Used For?
• Mortgage interest (but not payment or prepayment of principal)
• Rent
• Utilities
• Interest on any other debt obligations that were incurred before February 15, 2020
• Covered supplier costs (made pursuant to contract or order in effect before covered period)
• Covered worker protection expenditures (related to COVID prevention measures, such as
ventilation systems, physical barriers, drive through facilities, employee screening equipment)
• Covered property damage costs from public disturbances in 2020 not covered by insurance
• Covered operational expenses (including costs for processing payroll, HR, sales/billing
software)
The Covered Period:
• The new rules under CAA’21 offer employers flexibility: the “covered period” begins on the date
proceeds are disbursed and ends on any date the borrower chooses between 8 and 24 weeks from the
disbursement date.
27. The Paycheck Protection Program “Round Two”
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27
Loan Forgiveness
A back-and-forth series of complex rules
• At least 60% of loan proceeds must be used for covered payroll costs to be eligible for full forgiveness.
• Loan amounts are forgiven, and the forgiveness excluded from gross income, in amounts that do not
exceed the original principal amount, and, as listed on the previous slides, were used to fund:
• Payroll and related employment costs
• Interest payments on mortgages (but not principal repayments)
• Certain enumerated operational expenses
• Rent, and
• Utility payments.
Since one of the main purposes of these loans is to promote
employee retention, forgiveness amounts are reduced for
certain employee layoffs and compensation reductions.
The forgiveness amounts can be restored by rehires and
restoration of compensation levels to pre-reduction levels.
28. The Paycheck Protection Program “Round Two”
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28
Loan Forgiveness Reductions
Forgiveness amounts calculated per the previous slide are reduced,
dollar for dollar, for employee cuts and certain reductions in wages.
• The “forgiveness reduction factor” is calculated for workforce reductions, as follows:
• Calculate the average number of FTEs per month during the covered period, DIVIDED BY
• The average number of FTEs per month between (a.) 2/15/19 through 6/30/19 -OR- between (b.) 1/1/20
through 2/29/20. Note that seasonal employers may only use (a.) as the denominator of their fraction.
• The forgiveness reduction factor is calculated for compensation reductions, as follows:
• For any employee who was paid $100,000 or less on an annualized basis in any pay period of 2019,
• The amount of any salary reduction exceeding 25% of total salary,
in the most recent full quarter.
• Note that the forgiveness reduction factor for workforce reductions
is a percentage, and the forgiveness reduction factor for
compensation reductions is a money amount. Both are applied to
the expected forgiveness amount to yield net forgiveness amount.
29. The Paycheck Protection Program “Round Two”
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29
Loan Forgiveness Reductions: Let’s Take an Example!
Gamma Inc. has 200 employees on January 25, 2021. On that date, they
receive the proceeds of a $4 million from their local bank, guaranteed by
the SBA under the PPP program. They choose a 24 week covered period.
• They calculate their preliminary forgiveness amount, based on eligible expenses of payroll, rent, enumerated
operational expenses and utilities, as of July 12, 2021, as $3.25 million.
• For their workforce reduction factor, they choose to use January-February, 2020 as the comparison period.
• Their average active FTEs from 1/25/2021 - 7/12/2021 were 185.
• Their average active FTEs from 1/1/2020 - 2/29/2020 were 225.
• Their workforce retention factor is therefore 82.2%, meaning that 17.8%
of their forgiveness amount ($0.5785 million) will be disallowed.
• Additionally, counting only employees earning less than $100,000
annualized, and exempting the first 25% of salary reductions for
each of the remaining employees, Gamma cut total salaries by $223,000.
• Gamma’s total forgiveness reduction = $0.5785 million plus $0.223 million, or
a total of $0.8015 million, leaving $2.4485 million as the allowable forgiveness.
30. The Paycheck Protection Program “Round Two”
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30
Loan Forgiveness Reductions: Oh, But Wait! There’s More!
Forgiveness amounts that would be disallowed per the calculations
on the previous slides can be restored, dollar for dollar, by
rehiring/reinstating staff and restoring salaries:
• Employers so affected can restore their full forgiveness amounts if, by the end of their chosen
covered period (second round loans only):
• They rehire/reinstate employees to the previous employment levels
(Note: equivalent headcount, NOT self-same employees)
• They restore employee pay to levels not less than 75% of the compensation levels at March 31,
2020 (the “end of the most recent full quarter.”) Once again, for purposes of this compensation
testing, employees earning more than $100,000 annualized can be excluded from the calculations.
HCM Impacts: As these regulations indicate, the PPP and its loan
forgiveness provisions will require flexible point-in-time ad hoc or
standard reporting focusing on areas like headcount and compensation.
31. The Paycheck Protection Program “Round Two” (CAA’21)
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31
“Streamlined Forgiveness? Yes, PLEASE!”
Under the CAA’21, the Small Business Administration was given until
January 20, 2021 to issue a new, one-page form that certain PPP borrowers
may use to document their forgiveness application:
• The SBA issued that form, 3508S, on January 29, 2021. In typical federal government style, the one-page
application was 6 pages: one page application, one page voluntary EEO disclosure, and four pages of
instructions.
• The simplified process applies to borrowers of $150,000 or less
• The application consists of documentation of:
• The number of employees retained through the covered period of the loan
• The estimated total qualified payroll costs incurred during that period
• The total loan amount and the requested loan forgiveness amount.
• No documentation is due with the application, but it is required that borrowers retain this documentation for
four years for payroll and employment records, and three years for all other records, in case of audit.
• This streamlined application is available to all new borrowers and retroactive for prior borrowers who
haven’t already received forgiveness.
• You can find the new form here: https://www.sba.gov/document/sba-form-3508s-ppp-loan-
forgiveness-form-3508s
32. The Paycheck Protection Program “Round Two” (CAA’21)
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32
“Streamlined Forgiveness? Yes, PLEASE!”
33. Business Benefits – Employee Retention Tax Credits
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33
The CARES Act Added a Fourth Revenue Replacement Option for Employers
• Remember that the Families First Coronavirus Response Act (FFCRA) offered three
distinct tax credits to employers for leave paid to qualifying employees:
• For Paid Health Emergency Leave,
• For Emergency Paid Sick Leave, for an employee’s “own illness.”
• For Emergency Paid Sick Leave, to care for a specified family member.
• The CARES Act added a fourth tax credit – the Employee Retention Tax Credit, to
offset the costs of paying employees whom the employer must furlough or place on
reduced hours due to lack of business of government-ordered closing of the business.
• ERTC is available to employers of any size – under or over 500 employees.
• ERTC is available to §501(c)(3) not-for-profit employers, but is not available to government entities.
• The CAA’21 added an “advance payment” provision, which allowed the monetization of the credit
even before any wages have been paid for a company that had 500 or less employees in 2019.
The advance payment is based on 70% of the average quarterly payroll for the same quarter in
2019. If the actual credit due the company, as determined at the end of the quarter, is less than the
amount of the advance payment, the company is obligated to repay the excess amount to the
government. Use IRS Form 7200 to file for an advance on the ERTC.
34. Business Benefits – Employee Retention Tax Credits
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34
ERTC Details – ORIGINAL 2020 Provisions
• The available tax credits per employee are calculated as 50% of the first $10,000 of eligible
wages, or $5,000.
• This was the maximum aggregate tax credit per employee for April 1, 2020 - December 31, 2020.
• The tax credit calculation includes the employer cost of health insurance for the creditable period.
• It is taken against employer “payroll taxes” owed but is “refundable” so it can exceed total taxes owed for
the period. Everything is reconciled on the quarterly Form 941.
• For an employer to qualify to take the credit, they must:
• Have conducted business in 2020 prior to the crisis, AND
• EITHER had their business operations fully or partially suspended by government order,
• OR experienced a calendar quarter year-over-year reduction in gross receipts of 50% or more. In this
case, they remain eligible for the benefit until gross receipts exceed 80% on that same comparison.
• IMPORTANT: For employers of 101 employees or more, the credit can only be taken on
wages paid to employees who are not working (i.e., retained in lieu of layoff or working a
reduced hours schedule imposed by the employer). For employers of less than 101
employees, all wages apply.
35. Business Benefits – Employee Retention Tax Credits
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35
ERTC Details – REVISED CAA’21 2021 Provisions
• The available tax credits per employee are calculated as 70% of the first $10,000 of eligible
wages, or $7,000, PER QUARTER.
• This is the maximum aggregate tax credit per employee per quarter for January 1, 2021–June 30, 2021.
• The tax credit calculation includes the employer cost of health insurance for the creditable period.
• It is taken against employer “payroll taxes” owed but is “refundable” so it can exceed total taxes owed for
the period. Everything is reconciled on the quarterly Form 941.
• For an employer to qualify to take the credit, they must:
• Have conducted business in 2020 prior to the crisis, AND
• EITHER had their business operations fully or partially suspended by government order,
• OR experienced a calendar quarter year-over-year reduction in gross receipts of 80% or more.
• IMPORTANT: For employers of 501 employees or more, the credit can only be taken on
wages paid to employees who are not working (i.e., retained in lieu of layoff or working a
reduced hours schedule imposed by the employer). For employers of less than 501
employees, all wages apply.
36. Business Benefits – Employee Retention Tax Credits
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36
ERTC Details – REVISED ARPA’21 2021 Provisions
• The available tax credits per employee continue to be calculated as 70% of the first
$10,000 of eligible wages, or $7,000, PER QUARTER.
• This is the maximum aggregate tax credit per employee per quarter for the period January 1, 2021 – June 30, 2021
under the CAA’21. The ARPA’21 extended the deadline two more calendar quarters, to December 31, 2021.
• Beginning in the third quarter of 2021 (July 1), the following additional modifications will
apply to the ERTC:
• Recovery startup businesses that began operating after February 15, 2020 are now considered qualified
employers, if they meet certain gross receipts requirements. A recovery startup business will be eligible for an
increased maximum credit of $50,000 per quarter, even if the business has not experienced a significant decline in
gross receipts or been subject to a full or partial suspension under government order.
• A ‘‘severely financially distressed employer” (defined as having suffered a decline in quarterly gross receipts of
90% or more compared to the same calendar quarter in 2019) will be able to treat all wages (up to the $10,000
limitation) paid during those quarters as qualified wages. This rule will allow a large employer (i.e., an employer
with 501 or more employees) under severe financial distress to treat those wages as qualified wages whether or
not its employees actually provide services.
• The statute of limitations for assessments relating to the ERTC is extended until five years after the date that
the original return claiming the credit is filed or treated as filed. (Example: 941 for 4Q2021 is filed timely on April
15, 2022; this return can be audited vis-à-vis the amount of ERTC claimed, until April 14, 2027.)
37. Business Benefits – Employee Retention Tax Credits
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37
Additional Changes to the ERTC (CAA’21)
• The original law did not permit a single employer to partake of the ERTC
and use PPP loan proceeds for the same covered period.
• The new law loosens this restriction: an employer may now participate in
both programs, however the same wages may not be used both for
forgiveness under the PPP AND the ERTC. (No “double-dipping.”)
• A repeated complaint under the prior ERTC rules was that, while the total
cost of health insurance premiums (employer AND employee if pre-tax)
was includable in the credit calculations, this only applied to employees
being paid wages – it excluded employees on layoff or furlough where the
employer was paying healthcare continuation. The new ERTC rules “fix”
this and ALL health insurance premiums are includable in the tax credit
calculation.
38. FFCRA Provisions Extended
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38
The Families First Coronavirus Response Act – REVISED CAA’21 2021 Provisions
• The FFCRA established two new forms of mandated paid leave for qualifying employers
and employees: Paid Health Emergency Leave (as an amendment to the Family &
Medical Leave Act), and Emergency Paid Sick Leave, and those two leave types offer
three types of tax credits:
• For Paid Health Emergency Leave, up to $200 per day for wages paid for up to 10 weeks ($10,000
maximum), for covered reasons
• For Emergency Paid Sick Leave, up to $511 per day for wages paid for up to 10 days ($5,110
maximum), for an employee’s “own illness.”
• For Emergency Paid Sick Leave, up to $200 per day for wages paid for up to 10 days ($2,000
maximum), to care for a specified family member.
• All of the above tax credits require that the employee be personally impacted by Coronavirus or
COVID illness.
• The CAA’21 extended availability of the tax credits through March 31, 2021, but did not
renew the mandate to offer these leave types to employees (for employers of certain
headcounts and below), which allowed the mandate to expire on December 31, 2020.
39. FFCRA Provisions Extended
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39
The Families First Coronavirus Response Act – REVISED ARPA’21 2021 Provisions
• The FFCRA established two new forms of mandated paid leave for qualifying employers
and employees: Paid Health Emergency Leave (as an amendment to the Family &
Medical Leave Act), and Emergency Paid Sick Leave, and those two leave types offer
three types of tax credits:
• For Paid Health Emergency Leave, up to $200 per day for wages paid for up to 10 weeks ($12,000
maximum), for covered reasons
• For Emergency Paid Sick Leave, up to $511 per day for wages paid for up to 10 days ($5,110
maximum), for an employee’s “own illness.”
• For Emergency Paid Sick Leave, up to $200 per day for wages paid for up to 10 days ($2,000
maximum), to care for a specified family member.
• ARPA’21 extended availability of the tax credits through September 30, 2021, but did not
reimpose the expired mandate to offer these leave types to employees (for employers of
certain headcounts and below).
40. FFCRA Provisions Extended
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40
The Families First Coronavirus Response Act – REVISED ARPA’21 2021 Provisions
• ARPA’21 revised the original FFCRA paid leave provisions in a number of important
ways, all effective April 1, 2021:
• ARPA expands the qualifying reasons for which leave can be taken (and tax credit claimed) under the
EPSL and/or EFML, to include leave:
• …to obtain COVID-19 immunization;
• …to recover from an injury, disability, illness or condition related to the COVID-19 immunization; and
• …to seek or await the results of a diagnostic test for, or medical diagnosis of COVID-19, where the employee has been
exposed to COVID-19 or the employer has requested such a test or diagnosis from the employee.
• ARPA strikes the provision in the FFCRA requiring the first two weeks of paid Extended FMLA (Paid
Health Emergency Leave) to be unpaid. This is why the maximum allotment per employee has been
adjusted from $10,000 to $12,000.
• ARPA “resets” the 10 day (or 80 hour) allotment limit on Emergency Paid Sick Leave (EPSL) effective
April 1, 2021. (Note: since extending FFCRA leave provisions is optional per employer, we await
DOL guidance on whether, if an employer chooses to extend, they MUST reset the entitlement to
claim the tax credits.)
41. FFCRA Provisions Extended
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41
The Families First Coronavirus Response Act – REVISED ARPA’21 2021 Provisions
• ARPA’21 revised the original FFCRA paid leave provisions in a number of important
ways, all effective April 1, 2021:
• ARPA also imposes important new non-discrimination restrictions on the tax credits: if employers
choose to extend FFCRA leave benefits, they may only take the available tax credits if, in awarding
the paid sick/FMLA, they do not discriminate in favor of highly compensated employees, full-time
employees, or on the basis of an employee’s tenure with the employer.
• Under ARPA, FFCRA tax credits are still available only to employers with fewer than 500 employees
as of the date the leave is to be taken.
• There is a fair amount of confusion about whether, under ARPA, FFCRA paid leave is newly available
to state and local government employers. (Under FFCRA and applicable CAA’21 modifications, state
and local governments were NOT eligible employers, no matter the size. Please check with your
legal advisors before assuming that “either side of this argument is correct” at this point, and
hopefully DOL and IRS will issue further, clarifying guidance.
43. Organize. Humanize. Maximize.
43
ARPA Makes Substantial COBRA Changes
ARPA Makes Substantial Changes to COBRA Coverage
For the period April 1 to September 30, 2021, ARPA requires
employers to cover 100% of the cost of COBRA for qualifying
beneficiaries:
• Healthcare coverage loss reasons included:
• Reduction in hours
• Involuntary termination (note that employees who voluntarily quit are not covered by this provision)
• This is NOT just “on a go-forward basis”, it includes employees/ex-employees who:
• Lose coverage for the above reasons from now through September (and elect COBRA)
• Are already enrolled in COBRA coverage
• Did not elect COBRA when it initially became available to them but are still eligible based on timing
(ex-employee must be notified of a new, $0 premium offer). A “special enrollment period” for this
type of employee opens April 1 and ends 60 days after delivery of the notification to them.
• Elected COBRA coverage initially but let the coverage lapse.
44. Organize. Humanize. Maximize.
44
ARPA Makes Substantial COBRA Changes
ARPA Makes Substantial Changes to COBRA Coverage
More details about the 100% COBRA cost subsidy:
• ARPA does not extend any employees’ eligibility for COBRA from the statutory 18-month
period.
• Therefore, employers may need to “look back” as far as November, 2019 to find all those involuntarily
terminated or reduced-hour employees who may be eligible for this benefit (and therefore be required
to be notified of the special enrollment period.)
• If an ex-employee’s 18-month COBRA entitlement begins after April 1, 2021 or ends before
September 30, 2021, their 100% subsidy period will be shorter than 6 months.
• Example: Acme Industries terminated Rod Runner on December 1, 2019, and he became eligible for
COBRA coverage on January 1, 2020. His 18-month COBRA period would end June 30, 2021. So
for Rod, the COBRA subsidy would be available for only three months, due to the expiration of the 18-
month COBRA coverage period in the middle of the ARPA COBRA subsidy window.
• As with COBRA entitlement generally, eligibility for the subsidy ends when a beneficiary
becomes eligible for another group health plan or Medicare. New statutory penalties apply to
beneficiaries who fail to notify plan sponsors when they lose eligibility for subsidized COBRA.
45. Organize. Humanize. Maximize.
45
ARPA Makes Substantial COBRA Changes
ARPA Makes Substantial Changes to COBRA Coverage
More details about the 100% COBRA cost subsidy (Funding):
• Under ARPA, the COBRA subsidy is funded entirely by the federal government.
• However, employers must “front” the money for the subsidy by offering the coverage cost-free to
qualified individuals and then claim a tax credit against employment taxes (similar to ERTC and
FFCRA paid leave current liability offsets we are all used to, by now.)
• Expect additional modifications to the quarterly 941 report (starting in second quarter) to account for
this reconciliation.
• We assume that the premium tax credit employers are permitted to take is the ENTIRE COBRA
premium: employee share PLUS employer share PLUS 2% administrative fee.
• The subsidy applies both to fully insured and self-insured plans, as well as to plans which are self-
funded but insured and not subject to COBRA but ARE subject to required continuation coverage
offers under state law. The presence of a TPA in the COBRA administration process does not
impact this new requirement; employers must be careful to coordinate closely with their TPA on
issues like required notifications to ensure none of the new statutory requirements are missed by
both parties.
46. Organize. Humanize. Maximize.
46
ARPA Makes Substantial COBRA Changes
ARPA Makes Substantial Changes to COBRA Coverage
More details about the 100% COBRA cost subsidy (Notices):
• Under ARPA, a number of new or modified notices must be sent to COBRA qualifiers.
• COBRA election notice packets must be modified to include the following additional information:
• The procedure, including any necessary paperwork, for establishing eligibility for the COBRA subsidy.
• Contact information for the individual responsible for providing additional information about the premium subsidy.
• For those who became eligible for COBRA prior to April 1, 2021, a description of the mandated special election period
(generally, April 1 through May 31, 2021).
• An explanation that a qualified beneficiary is required to notify the plan if they lose eligibility to receive the COBRA subsidy
due to eligibility for another group health plan or Medicare coverage.
• A description of the penalty for failure to notify the plan of disqualification.
• An explanation of a qualified beneficiary’s right to subsidized COBRA coverage, and any conditions on eligibility to the
subsidy.
• If plan rules permit, the notice can include information about electing another plan which may be
less expensive for the beneficiary after the subsidy period expires.
• The above special, limited-time notices can be made via modification of regular notices, or “insert” of
a separate notice delivered with the regular notice.
47. Organize. Humanize. Maximize.
47
ARPA Makes Substantial COBRA Changes
ARPA Makes Substantial Changes to COBRA Coverage
More details about the 100% COBRA cost subsidy (Notices, ctd.):
• While employers are permitted to modify and distribute their notices on their own (subject to
inclusion of all the details previously noted), DOL is required to issue model notice language
no later than 30 days after ARPA’s enactment, by May 11.
• An additional notice is required for all COBRA beneficiaries who have elected coverage under
the zero-cost terms, notifying them of the impending end of the subsidy. This notice must be
delivered no earlier than 45 days before, nor later than 14 days before, the subsidy ends (i.e.,
between August 16 and September 16, 2021.)
• So, to recap, there are three new/modified notices required under the ARPA COBRA
subsidy:
• Modification of “regular” COBRA election notices for those with a qualifying event on or after April 1.
• Notification to all those who qualify but previously failed to elect or dropped coverage by non-payment
of the upcoming “special election period.”
• Notification for all those who elect COBRA coverage with the subsidy, of the expiration of the subsidy.
48. Organize. Humanize. Maximize.
48
ARPA Makes Substantial COBRA Changes
ARPA Makes Substantial Changes to COBRA Coverage
Free COBRA Coverage and the “Law of Unintended Consequences”:
• Here are just a few ways that “free-free-free!” COBRA for six months may upend your
HR/Benefits planning:
• For beneficiaries: employees and ex-employees should consider the possibility of future gaps in coverage.
Example: An hours-reduced employee is attracted by the free COBRA premiums for six months (regularly
$1,500 family coverage COBRA premium) but cannot afford the premiums on October 1, 2021. Remember that
regular expiration of a COBRA qualifying 18-month period DOES trigger a special enrollment period in Exchange
coverage; voluntarily dropping COBRA coverage – for whatever reason – does NOT!
• For plan sponsors: Significant risk of increased adverse selection? A zero dollar premium is attractive,
and “stop-gap” users of COBRA tend to be higher utilizers of the benefits under the plan.
• For self-funded employers: Will the tax credit for the COBRA premium even cover all costs? Self-funded
employers tend to use estimates of the pro-rata cost per participant for healthcare coverage as the COBRA rate.
• For HR executives (in consultation with legal counsel): Some employers rely on a paid COBRA coverage
benefit as consideration for a release of claims on termination. But a statutorily-mandated cost reduction
removes that benefit from the “consideration equation.” So, for example, a severance plan that only offers
payout of unused vacation, plus 6 months of paid COBRA coverage, in a state where unused vacation must be
paid out, could very well be found to lack consideration, and require additional benefits/pay to be valid.
49. Organize. Humanize. Maximize.
49
Miscellaneous and Benefits Impacting Provisions
ARPA’21 Significantly Expands ACA Premium Subsidies in the Exchanges *
Designed to implement the biggest reductions in Marketplace
healthcare premiums since the ACA’s inception, ARPA:
• …reduces the maximum spend on exchange-purchased benchmark plan coverage from
9.83% of household income to 8.5% of household income (through 2022).
• …eliminates the “subsidy cliff” at 400% of FPL ($51,520 for an individual; $106,000 for a family
of four). As a result, this expands, by at least 20%, the number of individuals who, when
shopping for exchange coverage, will receive an advance premium tax credit.
• …includes a special provision for the unemployed: taxpayers who receive unemployment
compensation during any single week beginning in 2021 may be eligible to receive premium
tax credits to help pay for all of their 2021 Marketplace coverage.
• …opens up a new “Special Enrollment Period, from April 1 to May 15, 2021, for consumers to
take advantage of the new lower premiums and higher premium tax credits.
* But Wait! I’m An Employer Offering Healthcare to My Employees! Why Would I Care?
50. Organize. Humanize. Maximize.
50
Refresher: The Employer Mandate
Effective for plan years beginning January 1, 2014, the Affordable Care Act specifies one
penalty if an applicable large employer (ALE) chooses not to offer health insurance to at least
95% of full-time employees (“pay”) and a different penalty if that ALE offers insurance but it
fails to meet specified coverage levels (“play”):
PPACA §4980H(a)
Coverage Not Offered
PPACA §4980H(b)
Coverage Offered Doesn’t Meet
Specified Levels
• Triggered if at least one
employee receives tax credits
or cost-sharing reductions
through an Exchange
• $173.33/month1 times the total
number of full-time employees
(30 or more hours in a week)
less first 30
• $260.00/month1 times the
total number of full-time
employees who receive
tax credits or cost-
sharing reductions
through an Exchange
1Original 2014 amount, indexed for inflation. (For 2021, the 4980H(a) penalty is $225.00/month and the 4980H(b) penalty is $338.33/month.)
According to kff.org,
ARPA increases the
number of individuals
eligible for a Marketplace
subsidy/APTC by 20%,
from18.1 million to 21.8
million.
52. Where is OSHA?
Organize. Humanize. Maximize.
52
The Pressure is Building on OSHA to Formalize Workplace Policies
• On January 21, 2021, President Biden’s first full day in office, he issued an Executive
Order entitled “Executive Order on Protecting Worker Health and Safety”
• The order called on the Department of Labor to, among other actions:
• …consider whether any emergency temporary standards on COVID-19, including with respect to masks in the
workplace, are necessary, and if such standards are determined to be necessary, issue them by March 15, 2021;
• …review the enforcement efforts of the Occupational Safety and Health Administration (OSHA) related to COVID-19
and identify any short-, medium-, and long-term changes that could be made to better protect workers and ensure
equity in enforcement.
• ARPA allocated an additional $75 million to OSHA for enforcement. This single bonus allocation
increased OSHA’s annual budget by an estimated 13%, and can pay for a BUNCH of new
inspectors and enforcement agents.
• Meanwhile, as the signing of ARPA approached on March 11, the number of states completely
dropping any masking requirement they may have previously had, was increasing, to 16.
• On March 12, OSHA officials called the head of the US Chamber of Commerce to relay the news
that OSHA definitely would be issuing a rule on masking in the workplace, but that they would not
meet the March 15 deadline to do so.
• Fifteen days later, employers across the country still wait…
53. Organize. Humanize. Maximize.
53
Questions?
More Questions:
Add them to the chat box!
We will publish a follow-up blog with additional Q &A
in the following locations:
Blog section on our site:
https://www.ascentis.com/blog/
54. Organize. Humanize. Maximize.
54
How Ascentis HR and Learning Management Can Help
Ascentis allows you to focus on the bigger picture with integrated
HR and Learning Management software. We provide real-time
data, easy reporting, and the ability task your employees with
virtual trainings to ensure your business is compliant.
• Ascentis HR provides over 300 on-demand reports, point-in-time
reports and configurable fields
• Fully integrated LMS incorporating unlimited content sources,
mobile access, and EZ-Upload (“SCORM Lite”) integration
capabilities
• LMS full catalog of over 2,000 content objects with categories
• Centralized company-branded employee and manager portals
deliver reliable information to help with managing time off such as
Emergency Paid Sick Leave and Extended Paid FML
Recruiting &
Onboarding
Talent
Management
HR &
Benefits
Payroll
Time &
Attendance
Ascentis
Welcome everyone to our one-hour webinar, Families First Coronavirus Response Act of 2020: Keys to Compliance.
For those of you who don’t know who we are, Ascentis is a human capital management company who has been providing a-la-carte HR software including HR, Payroll, Time, Talent, and Recruiting to organizations for over 30 years.
We have learned our greatest way to support you is by being an extension of your team. We do this through education… by providing over thousands of HR and payroll professionals with free accredited webinars….and by making sure we have the products and the support to empower you in your role and impact your employees experience.
For those that are new to our webinars, here are three quick housekeeping notes:
1) Please enter all your questions into the chat box. Questions about sound quality or even accreditation will be answered right away. And questions for our speaker will be addressed during a brief Q&A at the end of the presentation.
2) Today’s slides are available for download from the Event Resources tab in your webcast player and will also be distributed to all of our audience members via email tomorrow.
3) This webinar is certified for credit. The criteria for credit is outlined on this slide for you to see. Please note: You must be logged in using your unique link from the confirmation email and you must attend for the full 60 minutes to get credit.
Before we get to Q&A, we want to better understand the impact changes like the Family First Act have on your processes. (Prompt Poll)
Please leverage the chat box to make sure you add any questions you may have.