Your Monthly
Newsletter from Integrated Benefit Solutions
|
June 2020
|
HSA Limits Increase for 2021
|
The IRS recently released Revenue Procedure
2020-32 to provide the inflation-adjusted limits for health
savings accounts (HSAs) and high deductible health plans (HDHPs)
for 2021. The IRS is required to publish these limits by June 1
of each year.
These limits include:
- The maximum HSA contribution
limit;
- The minimum deductible
amount for HDHPs; and
- The maximum out-of-pocket
expense limit for HDHPs.
These
limits vary based on whether an individual has self-only or
family coverage under an HDHP.
Eligible individuals with self-only HDHP coverage will be able to
contribute $3,600 to their HSAs for 2021, up from $3,550 for
2020. Eligible individuals with family HDHP coverage will be able
to contribute $7,200 to their HSAs for 2021, up from $7,100 for
2020. Individuals who are age 55 or older are permitted to make
an additional $1,000 “catch-up” contribution to their HSAs.
The minimum deductible amount for HDHPs remains the same for 2021
plan years ($1,400 for self-only coverage and $2,800 for family
coverage). However, the HDHP maximum out-of-pocket expense limit
increases to $7,000 for self-only coverage and $14,000 for family
coverage.
Employers that sponsor HDHPs should review their plan’s
cost-sharing limits (minimum deductibles and maximum
out-of-pocket expense limit) when preparing for the plan year
beginning in 2021. Also, employers that allow employees to make
pre-tax HSA contributions should update their plan communications
for the increased contribution limits.
|
|
|
Work-life Balance Considerations Post-coronavirus
|
The coronavirus pandemic has sparked one of the
largest social experiments in history. Virtually overnight,
businesses across the world have been forced to rethink how they
operate. Decisions made during this uncertain period will
resonate for years and may serve as the base for a new, remote
lifestyle post-coronavirus.
Employee work-life balance is especially important for employers
to consider—namely, how old standards play into new working
arrangements and how employers can help relieve potential
employee burdens.
The classic, white-collar 9-to-5 work shift has been around for
decades—an employee works their eight hours a day, then goes
home. This standard had worked fine, but it hit a major speed
bump when two-thirds of Americans were essentially ordered to
work remotely. Given that only 3% of full-time employees
primarily worked from home a few years ago, this change has not
been without growing pains.
A common complaint is the expectation of always being available.
Some employees report receiving calls or emails outside their
traditional work hours when they work from home. What’s more,
those employees are expected to reply quickly to those
communications, even on the weekends.
Similarly, some employees say they feel like they can’t take as
many breaks or request time off when working remotely because
they fear it will reflect poorly on them.
Making even small accommodations can help employees balance their
professional and personal lives. Moreover, having such offerings
makes employers more attractive to those with busy lifestyles,
such as working parents.
|
|
|
Post-coronavirus Business Travel Considerations
|
Travel—for both business and leisure—worldwide has
virtually come to a standstill during the coronavirus pandemic.
At this point, nobody knows when it will come back. Whenever that
time comes though, travel will certainly be different than it was
before. Airports, airlines, hotels and car rental companies will
likely be taking new precautions as companies start greenlighting
travel for business purposes.
The Global Business Travel Association (GBTA) estimates that the
coronavirus potentially costs the travel industry $46.6 billion
each month as people stay home. A GBTA survey found that
employers canceled or suspended nearly all previously booked or
planned international business travel. Ninety-two percent of
respondents said all or most domestic business travel had been
canceled or suspended.
After months of no traveling or not being in the office, there
may be a pent-up desire to travel. Business travelers often are
known to grumble about frequent travel and living out of a
suitcase, but after the coronavirus pandemic, there’s a chance
everyone is looking forward to the opportunity to pack a carry-on
bag or book a red-eye flight.
Right now, it’s a waiting game as states and employers move into
recovery mode from COVID-19. Safety is going to be the main
priority for all travelers. Therefore, decision-makers should
lean on travel advisories from the Centers for Disease and
Prevention and the World Health Organization. Companies will do
well to err on the side of caution and keep in mind that it’s not just the destination, but the trip
itself where business travelers are at risk for exposure.
|
|
|
Hiring and Managing Seasonal Employees
|
With the summer hiring season underway,
employers should begin thinking about how best to hire and manage
seasonal employees. Employers who do not dedicate time to these
critical steps risk having to face disgruntled employees, unhappy
customers, and even legal violations. To learn some best
practices for hiring and managing seasonal employees, please
watch the video below.
|
|
|
|
|
|
|
|