Your Monthly
Newsletter from Integrated Benefit Solutions
|
August 2020
|
Affordability Percentages Will Increase for 2021
|
The IRS recently issued Revenue Procedure
2020-36 to index the contribution percentages in 2021 for
determining affordability of an employer’s plan under the
Affordable Care Act (ACA).
For plan years beginning in 2021, employer-sponsored coverage
will be considered affordable if the employee’s required
contribution for self-only coverage does not exceed:
- 9.83% of the employee’s
household income for the year, for purposes of both the pay
or play rules and premium tax credit eligibility; and
- 8.27% of the employee’s
household income for the year, for purposes of an individual
mandate exemption (adjusted under separate guidance).
Although this penalty was reduced to zero in 2019, some
individuals may need to claim an exemption for other
purposes.
The
updated affordability percentages are effective for taxable years
and plan years beginning Jan. 1, 2021. This is a slight increase
from the affordability contribution percentages for 2020. As a
result, some employers may have additional flexibility in setting
their employee contributions for 2021 to meet the adjusted
percentage.
|
|
|
Remote Verification of Form I-9 Documents Extended
to Aug. 19
|
The U.S. Department of Homeland Security (DHS) has
announced
that the exemption for the physical inspection of Form I-9
documents has been extended to Aug. 19, 2020. According to the
DHS, this will serve as the final extension.
Physical
Inspection
Employers must complete and sign Section 2 of Form I-9 within
three business days of the employee’s first day of employment.
Employers are required to physically examine the documents the
employee presents from the list of acceptable documents to prove
his or her employment eligibility.
Remote
Verification
Because of COVID-19, DHS is allowing employers
that are operating remotely to conduct a remote verification of
approved I-9 documents. The exemption also applies to new hires
affected by quarantine or lockdown protocols. The exemption does
not apply to employers that have employees physically present at
a work location.
Under the exemption, employers must complete a remote inspection
of approved documents within three business days and enter
“COVID-19” as the reason for the physical inspection delay.
Employers that use this exemption must also keep written
documentation of their remote onboarding and telework policy for
each employee.
Within three days of when normal operations resume, all employees
who were onboarded using remote verification must present their
approved documents for a physical inspection. Employers should
add “documents physically examined” with the date of inspection
to affected I-9 forms.
|
|
|
Determining Whether a COVID-19 Case Is Work-related
|
Even as businesses reopen and employees return to
their new normal, the risk of becoming exposed to and ill with
COVID-19 is still present. When an employee reports they have
COVID-19, employers are faced with the difficult task of
determining whether the employee’s illness is work-related.
As is the case with all inherently legal issues, employers are
strongly recommended to seek the guidance of legal counsel when
faced with these sorts of situations.
OSHA
Guidance on Work-relatedness
An injury or illness is work-related if an event or exposure in
the work environment either caused or contributed to the
resulting condition or significantly aggravated a preexisting
injury or illness. Work-relatedness is presumed for events or
exposures in the work environment.
Unfortunately, because the coronavirus is so widespread, determining
whether an employee’s illness is work-related can be difficult
and should be evaluated on a case-by-case basis.
Employers should ask probing questions to reveal the potential
exposure of COVID-19 in their workplaces. Employers should
consult with legal counsel if they are concerned about what kinds
of questions they may ask. After conducting a review, employers
will need to record the incident and report it to OSHA.
|
|
|
Retain Employees Through Training
|
With the daily demands of keeping a workplace
productive and profitable, many managers may overlook one simple
perk that has been proven to boost employee retention:
professional training. Learn how to use training as a tool to
retain your top employees by watching the video below.
For additional HR guidance, visit our Human
Resources section.
|
|
|
|
|
|
|
|