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Impact of the Inflation Reduction Act

Impact of the Inflation Reduction Act

August 19, 2022

On Aug. 16, 2022, President Joe Biden signed the Inflation Reduction Act (IRA) into law. While this law is primarily aimed at fighting inflation and reducing carbon emissions, it also contains a number of reforms that will impact health coverage. The health reforms included in the law have staggered effective dates and will be implemented over the next several years. Good news for employers and insurers is that this Act has very little immediate impact on employers. Here are the main things to be aware of:

ACA Subsidies


The American Rescue Plan Act of 2021 (ARPA) expanded Affordable Care Act (ACA) subsidies through 2022. The IRA extends these subsidies for three more years, through the end of 2025.

As a result of these higher subsidies, employers who fail to offer affordable health care plans may see an increase in ACA utilization by their employees, thus potentially leading to a higher frequency of receiving penalty notices form the Internal Revenue Service.

It is expected these subsidies could be made permanent at a later date. This could lead to an increasing number of Americans choosing to sign up for health care coverage under the ACA, which in turn may have an impact on health care plan costs in the future. It may also lead to new types of allowable health care plans and reimbursement strategies.

Prescription Costs


The IRA will reduce the cost of prescription drugs under Medicare Part D by allowing the Centers of Medicare and Medicaid Services (CMS) to work with pharmaceutical providers on pricing. It will also place a cap on insulin costs under Medicare Part B.

There is speculation that the costs for these medications could be passed along indirectly to employer groups via cross-subsidization strategies. The Transparency in Coverage (TiC) regulations may prevent or mitigate some portion of this increase. However, the portions of TiC related to prescription drugs have been challenged by the pharmaceutical industry in court. No final determination has been made on any of those challenges as yet.

Internal Revenue Service


The IRA allocates $80 billion to the Internal Revenue Service for hiring additional staffing, with $45.6 billion specifically allocated to enforcement activities. While this increase will clearly lead to more auditing activities (private individuals and families, as well as corporations), over half of the IRS’ current workforce is expected to reach retirement age in the next ten years.

The hiring that will be done as a result of the IRA allocation will temporarily swell the IRS workforce. As the projected IRS workforce retirements come into place, this hiring bubble will gradually subside. Until then, however, during the bubble period, it is reasonable to expect that auditing will increase.

For more understanding


Both corporations and individuals should become familiar with the health reforms that are included in the Inflation Reduction Act (IRA) to determine how health care coverage, costs, and current strategies may be affected.

For a copy of the IRA overview, click here:

Impact of the Inflation Reduction Act

If you have any questions on the contents of the IRA or other benefits-related legislation, please contact us at 714.716.4060 or mike@my-EBP.com, or provide info here .

Employers explore strategies that impact employee retention and turnover positively

Employers explore strategies that impact employee retention & turnover positively

 

May 6, 2022

 

 

Intro

 

The past year has seen months with the largest departures of employees on record. This action by employees, now often referred to as The Great Resignation, has been quite the challenge for organizations across industries and even as we move past the pandemic, retaining employees continues to be a top ongoing challenge in most work environments.   Unfortunately for employers, if their organization is experiencing high turnover, chances are they’re also experiencing relatively high financial losses.

 

Research suggests that it can cost as much as 50% or more of an employee’s annual salary to replace a current employee. The costs of reviewing applications, processing candidates, conducting interviews, training and purchasing equipment for new hires aren’t only monetary—they also result in lost time and productivity, which can negatively impact company culture.   Given the high cost of losing an employee, retention should be a top priority for every organization—even more so as today’s workplace continues to be shaped by the pandemic.

 

The pandemic has driven many employees to voluntarily leave their jobs for better compensation, benefits, and workplace environment factors such as work-life balance and remote or hybrid arrangements. As employers develop plans for the future of their workplace, critical employee retention factors, including meaningful benefits and career development opportunities, must be thoughtfully included as part of a strategy to keep employees.

 

First Steps

 

Both internal and external factors can influence employee retention. In today’s landscape, examples of external factors can include unemployment rates, the local economy, industry competition and industry compensation standards. While employers can’t always control those external factors, they can strive to understand the current talent market and focus on how they can meet the needs of employees and improve employee retention in their workplace.

 

One of the first steps to adapting to the new ways of work and meeting the new needs of employees in order to improve retention is for employers to take an honest look at their overall benefits programs and overall approach to employee well-being, always an important topic, but now positioned front & center due to the events of the last few years. This involves identifying opportunities to make changes if needed, by asking employees what is important to them and then employers need to follow through by taking action.

 

Also, employee communication can strategically help drive new benefits when done frequently and openly. Organizations that are already finding new ways to innovate and evolve their existing benefits have an advantage in standing out to employees. Much time, effort and resources go into benefit plans, so ensure that employees understand their benefits and how to use them.  The most successful communication strategy should start with the open enrollment season and then, just as important, continue to communicate effectively throughout the year when employees and their families may actually be using their benefits to access care.

 

Shifting benefits communication strategies to enable employees to take advantage of all of their benefits not only around open enrollment, but year-round could offer huge rewards for organizations looking to support their employees and increase retention. By supporting employees beyond open enrollment, and effectively communicating every benefit that is offered, employees will feel loyal and secure year-round.

 

Resource

 

We have put together an HR Toolkit that offers an overview of employee retention in today’s pandemic-era workplace as employers move and adapt forward. It contains current trends shaping today’s workplaces and how the employee experience impacts retention. Additionally, it explores workplace strategies that employers can execute to impact employee retention and turnover at their organizations positively.

 

For a copy of this HR Toolkit providing an introduction to exploring positive employee retention, click here: HR Toolkit – Employee Retention.

For clarity & assistance with finding out how retaining employees positively will improve your success with your business, reach out to Mike Young at MY-Employee Benefits Plus at mike@my-EBP.com or 714.716.4060.

 

2022 Employee Benefits Market Outlook Executive Summary

2022 Employee Benefits Market Outlook Executive Summary

March 11, 2022

The challenges of the past few years have been unprecedented, and they have changed the way that employees think about the workplace, benefits, and their careers. Employers are still facing an uncertain future due to the COVID-19 pandemic, rising healthcare costs, and the “Great Resignation”, with no end in sight.

Understanding these challenges is essential for keeping your business prepared and profitable. Read on to learn more about what factors influenced the employee benefits market in 2021, and what you can expect in 2022.

Please note: This is a high-level executive summary. A full copy of the report is available by clicking here: 2022 Employee Benefits Market Outlook .

The Challenges of 2021 Remain

It’s impossible to look forward to the future without understanding the past. In many ways, the unique, but interconnected, trends of 2021 will help you as a business owner make sense of the current state of affairs as each of these influences will have a major impact on the trends expected throughout 2022.

The COVID-19 Pandemic:

As we saw in 2020, the pandemic remained the most significant market disruption in 2021. The pandemic never considerably improved in 2021, and while vaccination rates are increasing and return to work is beginning in some areas but with a changed focus, COVID-19 cases continued to trend upwards, and the economic uncertainty caused by the pandemic continues.

Labor Shortage:

In early 2021, economists predicted returning to the workforce in droves – but that never happened. Instead, at the end of 2021 there were still over 6 million unemployed Americans, and countless job opening that hadn’t been filled. It was all due to a fundamental change in how workers viewed their labor and the value of employee benefits, especially in the service sector. Employees are holding out for better jobs and more meaningful benefits – and that’s what you as an employer need to grapple with in 2022.

Rising Health Care Costs:

For over a decade, employers have experienced steadily increasing health care costs. While some choose to defer nonemergency health care during the pandemic, 2021 saw individuals return to their normal health care routines, increasing the utilization of care and a resulting cost increase. Once again, you, as an employer, faced with major cost increases, were forced to reconcile limited budgets with employees demanding more value than ever from their benefit offerings.

Looking Forward to 2022

COVID-19 Isn’t Going Anywhere:

The COVID-19 pandemic is showing no signs of slowing down in 2022. The ripple effects of the pandemic will continue to be a catalyst for many of the workplace trends we expect to see in 2022.

Give Employees the Flexibility They Want & Need:

Thanks to the shift in workplace norms employers experienced during the pandemic, the one-size-fits-all model that many employers have used for employees just isn’t going to cut it anymore. Employees want more from their jobs – and they’re willing to change jobs to find it. According to a SHRM (Society of Human Resource Management) survey, 36% of employees are willing to change jobs for better benefits.

If employers want to attract, hire, and retain the employees that are invested in helping their company grow, they need to meet their employees in the middle. And that means offering a workplace and benefits package that is holistic, flexible, and can meet the needs of each individual employee. Employees want jobs and benefits that will have a meaningful impact on their quality of life, and means employers need to think beyond the basic benefit offerings that they have provided in the past. In addition to basic benefits, employees are looking for expanded PTO, flexible leave options, remote & hybrid work options, expanded mental health services, student loan relief and virtual open enrollment and easily accessible & simplified benefit education to name a few.

Protect the Bottom Line:

While keeping employees happy is going to be key in 2022, employers still have to consider how they can protect their bottom line while health care costs continue to rise.

One option to consider is switching to an alternative health plan model, such as individual coverage health reimbursement arrangements, reference-based pricing or level-funding. All these options have been available for some time but they have been successfully scaled so that they are available now to a greater number of employers, especially those with under 250 employees.

At the same time, keeping employees educated on how to make the smartest health care decisions can also have a large impact. By ensuring that employees understand how their health plans and prescription coverages work, employees will make smarter usage decisions, which will lead to lower costs for both you, the employer, and your employees. After all, it’s in everyone’s best interest to work together.

Ready to learn more?

2022 will be a year full of challenges, thanks in large part to the pandemic and its wide-reaching consequences. It will also be a year of opportunity. After nearly two years of a pandemic, it may be tempting for employers to sit on their hands and wait for a return to normalcy. But successful organizations will be those that prepare for and embrace the new normal.

In 2022, employers will need to think creatively about how they can accommodate employee desires while also controlling costs and ensuring worker safety from COVID-19. While this may seem daunting, organizations that rise to the occasion will be well positioned for future growth and stability.

Reach out to Mike Young at MY-Employee Benefits to discuss these trends in more detail and request additional resources on these and other important workplace topics that will position you as an employer of choice in this new environment. He can be reached at 714.716.4060 or mike@my-EBP.com .

 

Health Savings Account (HSA)-Withdrawal and Spending Rules

Health Savings Account (HSA) – Withdrawals and Spending Rules

February 25, 2022

A health savings account (HSA) is a trust or account used to pay medical expenses that a high deductible health plan (HDHP) does not pay. HSAs offer triple tax advantages to account owners, including tax exemptions for contributions, earnings and distributions. To obtain the last exemption, HSA holders must follow strict rules for spending HSA funds.

HSA funds may be used on a tax-free basis if they are used to pay for qualified medical expenses that were incurred after the HSA was established. Individuals do not need to meet the eligibility criteria for making HSA contributions in order to receive a tax-free withdrawal from their HSAs.

Employers that offer HSA programs generally have very little, if any, involvement in HSA distributions. HSA owners have sole discretion for how and when to use HSA funds, and an HSA custodian or trustee tracks and reports all HSA activity.

UPDATE: Effective Jan. 1, 2020, over-the-counter (OTC) medicines and drugs and menstrual care products are qualified medical expenses that may be paid for by an HSA on a tax-free basis.

Withdrawal Timing


  • HSA funds cannot be used for expenses incurred prior to the date the HSA was established.
  • For medical expenses incurred after an HSA is established, there is no time limit for when an HSA owner may take a withdrawal.
  • HSA owners do not have to be eligible for HSA contributions in order to take a tax-free withdrawal.

Eligible Medical Expenses


  • HSA withdrawals are tax-free if they are used for qualified medical expenses that are not paid or reimbursed by another source.
  • Health insurance premiums are not qualified medical expenses, with some limited exceptions.
  • Effective Jan, 1, 2020, OTC medicines and drugs and menstrual care products are qualified medical expenses.

Links and Resources


For a more detailed copy of this HSA Compliance Overview, click here: HSA Withdrawal and Spending Rules .

For clarity & assistance with finding out how setting up an HSA plan will benefit you and your employees, reach out to Mike Young at MY-Employee Benefits Plus at mike@my-EBP.com or 714.716.4060.

Upcoming ACA Reporting Deadlines Fast Approaching-March 2, 2022

Upcoming ACA Reporting Deadlines Fast Approaching on March 2, 2022

February 4, 2022

Affordable Care Act (ACA) reporting under Section 6055 and Section 6056 for the 2021 calendar year is due in early 2022. Specifically, reporting entities must:

  • Furnish statements to individuals by March 2, 2022; and
  • File returns with the IRS by Feb. 28, 2022 (or March 31, 2022, if filing electronically).


Penalties may apply for reporting entities that fail to file and furnish required returns and statements by the deadline.


A proposed rule issued on Nov. 22, 2021, extended the annual furnishing deadlines under both Sections 6055 and 6056 for an additional 30 days. This rule is in proposed form and has not been finalized. However, reporting entities may rely on the proposed rule for 2021 reporting, even before it is finalized. Reporting entities are generally encouraged to furnish statements to individuals as soon as they are able.

Action Steps


The IRS generally encourages reporting entities to furnish statements as soon as they are able.


Although penalty relief has been provided in prior years for reporting entities that make good faith efforts to comply with the reporting requirements, this penalty relief is not available for reporting for tax year 2021 and subsequent years. This good faith relief was intended to be transitional to accommodate public concerns with implementing new reporting requirements under the ACA. These reporting requirements have now been in place for six years, and the IRS has determined that transitional relief is no longer appropriate. Therefore, the IRS has discontinued the transitional good faith relief after tax year 2020.

Section 6055 and 6055 Reporting

  • Section 6055 applies to providers of minimum essential coverage (MEC), such as health insurance issuers and employers with self-insured health plans. These entities generally use Forms 1094-B and 1095-B to report information about the coverage they provided during the previous year.
  • Section 6056 applies to applicable large employers (ALEs)¬¬—generally, those employers with 50 or more full-time employees, including full-time equivalents, in the previous year. ALEs use Forms 1094-C and 1095-C to report information relating to the health coverage that they offer (or do not offer) to their full-time employees.

The ACA’s individual mandate penalty was reduced to zero beginning in 2019. As a result, the IRS has been studying whether and how the Section 6055 reporting requirements should change, if at all, for future years. Despite the elimination of the individual mandate penalty, Section 6055 reporting continues to be required. A proposed rule described below would provide that individual statements do not have to be furnished if certain requirements are met. However, this proposed rule has not been finalized.

Annual Deadlines

Generally, forms must be filed with the IRS annually, no later than Feb. 28 (March 31, if filed electronically) of the year following the calendar year to which the return relates. In addition, reporting entities must also furnish statements annually to each individual who is provided MEC (under Section 6055) and each of the ALE’s full-time employees (under Section 6056). Individual statements are generally due on or before Jan. 31 of the year immediately following the calendar year to which the statements relate.

Extended Furnishing Deadlines

The proposed rule provides an automatic extension of 30 days to furnish statements (Forms 1095-B and 1095-C) to individuals under Sections 6055 and 6056. Because the extension is automatic, reporting entities do not need to formally request an extension from the IRS.


Under the proposed rule, statements furnished to individuals will be timely if furnished no later than 30 days after Jan. 31 of the calendar year following the calendar year to which the statement relates. If the extended furnishing date falls on a weekend day or legal holiday, statements will be timely if furnished on the next business day.


This rule is in proposed form and has not been finalized. However, reporting entities may rely on the proposed rule for 2021 reporting, even before it is finalized.

Impact on Filing Deadline

The proposed rule does not extend the due date for filing Forms 1094-B, 1095-B, 1094-C or 1095-C with the IRS. This due date remains Feb. 28, if filing on paper, or March 31, if filing electronically. Because the due dates are unchanged, potential automatic extensions of time for filing information returns are still available under the normal rules by submitting Form 8809. Additional extensions of time to file may also be available under certain hardship conditions.

Alternative Method of Furnishing Under Section 6055

The individual mandate penalty has been reduced to zero, beginning in 2019. As a result, an individual does not need the information on Form 1095-B in order to calculate his or her federal tax liability or file a federal income tax return. However, reporting entities required to furnish Form 1095-B to individuals must continue to expend resources to do so.


For all years that the individual mandate penalty is zero, the proposed rule provides an alternative manner for a reporting entity to furnish statements to individuals under Section 6055. Under this alternative manner of furnishing, the reporting entity must post a clear and conspicuous notice on its website stating that responsible individuals may receive a copy of their statement upon request. The notice must include an email address, a physical address to which a request may be sent and a telephone number to contact the reporting entity with any questions. Reporting entities must generally retain the website notice until Oct. 15 of the year following the calendar year to which the statement relates.


ALEs that offer self-insured health plans are generally required to use Form 1095-C, Part III, to meet the Section 6055 reporting requirements, instead of Form 1095-B. Self-insured ALEs may use this relief for employees who are enrolled in the ALE’s self-insured plan and who are not full-time employees of the ALE, as well as for nonemployees (such as former employees) who are enrolled in the self-insured plan. However, ALEs may not use the alternative method of furnishing for full-time employees who are enrolled in the self-insured plan.


If, in the future, the individual mandate penalty is not zero, the IRS anticipates that reporting entities will need adequate time to develop or restart processes for preparing and mailing paper statements to responsible individuals. If the individual mandate penalty is modified in the future, the IRS anticipates providing guidance, if necessary, to allow sufficient time for reporting entities to restart the reporting process.

Elimination of Good Faith Transition Relief from Penalties

For each prior year of reporting, the IRS has provided transitional good faith penalty relief for reporting entities that could show that they made good faith efforts to comply with the information reporting requirements. However, the transitional good faith relief from penalties for reporting incorrect or incomplete information on information returns or statements is not available for reporting for tax year 2021 and subsequent years.


This good faith relief was intended to be transitional to accommodate public concerns with implementing new reporting requirements under the ACA. These reporting requirements have now been in place for six years, and the IRS has determined that transitional relief is no longer appropriate. Therefore, the IRS has discontinued the transitional good faith relief after tax year 2020.

Conclusion

ACA Reporting is complex. For clarity & assistance with dealing with the complex ACA reporting deadlines, reach out to Mike Young at MY-Employee Benefits Plus at mike@my-EBP.com or 714.716.4060.

And for a copy of this news brief, click here: Upcoming ACA Reporting Deadlines .

Agencies Issue Guidance on Coverage of OTC COVID-19 Tests

Agencies Issue Guidance on Coverage of OTC COVID-19 Tests

January 12, 2022

On January 10, 2022, the Depts. of Labor, Health & Human Services (HHS), and the Treasury issued FAQ guidance regarding the requirements for group health plans and health insurance issuers to cover over-the-counter (OTC) COVID-19 diagnostic tests.

Legal Requirements

Plans and issuers must cover the costs of COVID-19 tests during the COVID-19 public health emergency without imposing any cost-sharing requirements, prior authorization, or medical management requirements.

Under guidance issued in June 2020, at-home COVID-19 tests had to be covered only if they were ordered by a health care provider who determined that the test was medically appropriate for the individual. At that time, the FDA had not yet authorized any at-home COVID-19 diagnostic tests. Since then, several types of OTC at-home tests have been approved.

As of January 15, 2022, the cost of these tests must be covered, even if they are obtained without the involvement of a health care provider. However, the FAQs do not require tests be covered if they are not for individualized diagnosis (such as tests for employment purposes).

Plan Options

Plans and insurance issuers may place some limits on coverage, such as:

  • Requiring individuals to purchase a test and submit a claim for reimbursement, rather than providing direct coverage to sellers.
  • Providing direct coverage through pharmacy networks or direct-to-consumer shipping programs and limiting reimbursements to other sources (the actual cost of the test, or $12, whichever is lower).
  • Setting limits on the number or frequency of OTCCOVID-19 tests that are covered (no less than 8 tests per month or 30-day period).
  • Taking steps to prevent, detect and address fraud and abuse.

Conclusion

Stay tuned as this issue continues to rapidly develop and we will keep you updated on any new developments. CMS Q&A has also provided some guidance. And for a copy of this news brief, click here: Agencies Issue Guidance on Coverage of OTC COVID-19 Tests .

Reach out to Mike Young today for more content on this new coverage for OTC COVID-19 test reimbursements and to discuss how further updates can affect your business at 714.716.4060 or mike@my-EBP.com .

Federal Court Blocks OSHA COVID-19 Vaccination and Testing ETS

Federal Court Blocks OSHA COVID-19 Vaccination and Testing ETS

November 9, 2021

On Saturday, November 6, 2021, the fifth Circuit of Appeals ordered a temporary stay on the Occupational Safety and Health Administration’s (OSHA) COVID-19 Emergency Temporary Standard (ETS) on mandatory COVID-19 vaccination and testing for the workplace. The order effectively prevents enforcement of this ETS until a final decision regarding the legality of this standard is published.

Temporary Stay

The stay was ordered in one of multiple lawsuits challenging the validity of OSHA’s COVID-19 ETS. These lawsuits request a permanent injunction against the ETS. The Court justified the order because it found “cause to believe there are grave statutory and constitutional issues” with the OSHA vaccination mandate.

The Court has ordered OSHA to respond to the request for permanent injunction by 5 p.m. on Monday, Nov. 8, 2021. Parties petitioning the injunction will have until 5 p.m. on Tuesday, 2021, to reply.

Impact on Employers

While the temporary stay effectively prevents enforcement of the ETS until a final decision on the legality of the standard is published, the law has not been permanently delayed or vacated officially. Therefore, the future of the ETS remains uncertain due to these pending legal challenges. While the final result is unknown, it will take weeks of planning for employers to comply with the ETS’s deadlines. Accordingly, employers may want to continue in their efforts to understand and prepare for compliance with the ETS as if it is going to take effect while litigation continues. Affected employers should also monitor development of this legal challenge to learn more about the viability of, and their compliance obligations with, the ETS.

Stay tuned as this issue continues to rapidly develop and we will keep you updated on any new developments. For a copy of this news brief, click here: Federal Court Blocks OSHA COVID-19 Vaccination and Testing ETS .

Reach out to Mike Young today for more content on this ETS mandate and the workplace and to discuss how further updates can affect your business at 714.716.4060 or mike@my-ebp.com .

OSHA Releases Vaccination and Testing ETS

OSHA Releases Vaccination and Testing ETS

November 5, 2021

On No. 4, 2021, the Occupational Safety and Health Administration (OSHA) announced a federal emergency temporary standard (ETS) to address the grave danger of COVID-19 infection in the workplace. Affected employers will be required to comply with most provisions of the ETS by Dec. 5, 2021, and with its testing requirements by Jan. 4, 2022. Affected employers include private employers with 100 or more employees (firm- or company-wide count). State plans will have 30 days to adopt the federal ETS or implement their own vaccination standard.

ETS Requirements

The ETS requires employers to:

  • Develop, implement and enforce a mandatory COVID-19 vaccination policy; or
  • Create a policy allowing employees to choose to get a vaccination or wear a face covering in the workplace and have weekly COVID-19 testing done.

Employers must determine the vaccination status of each employee, obtain acceptable proof of vaccination and keep a roster of each employee’s vaccination status.

Weekly Testing Requirements

Employees who are not fully vaccinated must be tested weekly or within seven days before returning to work. The ETS does not require employers to pay for any costs associated with testing. However, employer payment for testing may be required by other laws, regulation, collective bargaining agreements or other collectively negotiated agreements.

Paid Leave

Employers are also required to allow reasonable time – including up to four hours of paid time – to received a primary vaccination dose. Reasonable time and paid sick leave are also required to recover from any side effects of the vaccination. Employees are required to provide immediate notice of a positive COVID-19 test or diagnosis, and will be removed immediately from work until return to work criteria are met.

ETS Exemptions

The requirements of the ETS do not apply to:

  • Employees who do not work with other individuals present;
  • Employees when they are working from home;
  • Employees who work exclusively outdoors;
  • Those covered under the Safer Federal Workforce Task Force;
  • Those covered by the healthcare ETS;
  • Employers that have fewer than 100 employees; and
  • Public employers in states without State plans

Conclusion

Employers should carefully review the vaccination and testing ETS, implement and start enforcing the requirements. Employers should also continue to monitor OSHA communications so they can be updated on any changes and amendments to the ETS. OSHA recently issued a sample policy template that can be used by an employer that will be mandating vaccination per the ETS above. Note: This document is a template and requires customization. Click here for a copy: Mandatory Vaccination Policy Template .

Stay tuned as this issue continues to rapidly develop and we will keep you updated on any new developments. For a copy of this news brief, click here: OSHA Releases Vaccination and Testing ETS .

Also, click here to get a copy of a more detailed news brief including important frequently asked questions: COVID-19 Vaccination and Testing ETS with Frequently Asked Questions .

Reach out to Mike Young today for more content on this ETS mandate and the workplace and to discuss how further updates can affect your business at 714.716.4060 or mike@my-EBP.com .

President Biden to Mandate COVID-19 Vaccine for Federal Employees and Large Employers

President Biden to Mandate COVID-19 Vaccine for Federal Employees and Large Employers

September 10, 2021

On Thursday, Sept. 9, 2021, President Joe Biden signed executive orders requiring federal workers and contractors to get vaccinated against COVID-19. Biden also directed the Occupational Safety and Health Administration (OSHA) to draft a new emergency rule requiring all businesses with 100 or more employees to ensure all of their workers are either tested for COVID-19 once a week or fully vaccinated.


These new rules come shortly after the Pfizer-BioNTech coronavirus vaccine was fully approved for use by the Food and Drug Administration, enabling the White House to fight the pandemic more aggressively.
The federal employee mandate will apply to executive branch employees and members of the armed services, among others. Applicable federal employees will not be provided the option for weekly testing in lieu of vaccination.


The OSHA emergency rule—which is expected in the coming weeks—could affect as many as 80 million Americans. It will reportedly require large employers to provide their workers with paid time off to get vaccinated and recover from any vaccination-related side effects (e.g., chills). Companies that fail to comply may be subject to up to $14,000 in fines per employee.


Additionally, COVID-19 vaccinations will be required for more than 17 million health care workers at hospitals and other facilities that receive Medicare or Medicaid reimbursement. This requirement covers a majority of health care workers throughout the country.

What’s Next?

This hardline stance on vaccines is a stark contrast to the hands-off approach taken by most employers earlier in the year. However, as Delta continues to cause upticks in hospitalizations and deaths throughout the country, employers will need to ramp up efforts to protect their organizations.


Health experts and business leaders agree that vaccination is the most effective way to limit the spread of Delta and maintain uninterrupted operations. Employers should expect the Biden Administration to continue to take measures to increase vaccination rates.


Large employers affected by these new rules should begin preparing to comply. Employers with less than 100 employees that are interested in their own vaccine mandates should consult with legal counsel before moving forward.

Conclusion

Stay tuned as this is a rapidly developing situation. We will keep you updated on any new developments. For a copy of this news brief, click here: President Biden to Mandate COVID-19 Vaccine for Large Employers

Reach out to Mike Young today for more content on vaccines and the workplace and to discuss how further updates can affect your business at 714.716.4060 or mike@my-EBP.com .

Important Retirement Plan Deadlines

Important Retirement Plan Deadlines

September 3, 2021

It’s that time of year when deadlines abound. It’s also a great time to evaluate your retirement plan design and there is still time to make changes or even more importantly implement a new plan. Remember we are here to help! Take the opportunity to act now because they will be here before you know it!

  • November 1 – Deadline to send notices regarding ending a SIMPLE retirement plan.
  • December 1 – Deadline to provide notice for a safe harbor match feature for the 2022 plan year coming up.
  • December 31 – Deadline to implement a 4% safe harbor non-elective contribution for the previous plan year retroactively.
  • Business’s tax return due date 2021 – An employer now has until the due date of the business’s tax return, including extensions, to establish a profit sharing, defined benefit, or cash balance plan for the prior year. The tax filing deadline varies based on the employer’s business entity type.

Have questions on these deadlines or the best retirement plan options for your business? Contact Mike Young at 714.716.4060 or mike@my-EBP.com or fill this short form out.