In response to the COVID-19 crisis, the IRS recently issued Notice 2020-52. It offers sponsors of safe harbor 401(k) plans with temporary relief from certain requirements applicable to midyear reductions or suspensions of contributions. The guidance also clarifies the requirements for midyear contribution reductions (during...
In Notice 2020-54, the IRS recently provided guidance to employers on Form W-2 reporting of qualified sick leave wages and qualified family leave wages. These are the wages paid to employees under the Families First Coronavirus Response Act. The guidance requires employers to report the amount...
The COVID-19 pandemic and resulting economic fallout have spurred layoffs and furloughs for many employers. As the months pass, organizations that have retained employees face another dilemma: How should we handle compensation changes? Pay raises have been out of the question for some organizations. In fact,...
In Notice 2020-50, the IRS recently provided guidance on ‘coronavirus-related distributions’ from retirement plans under Section 2202 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Here are some pertinent details for employers. Pension Plans The Notice points out that Section 2202 does not change the...
The IRS recently announced special tax relief for leave-based donation programs set up by employers to aid those directly affected by the COVID-19 pandemic. Under such programs, an employer can allow its employees to give up vacation, sick, or personal leave in exchange for a...
Under IRS regulations regarding electronic consents and elections, if a signature must be witnessed by a retirement plan representative or notary public, it must be witnessed ‘in the physical presence’ of the representative or notary unless guidance has provided an alternative procedure. In Notice 2020-42,...
To cope with the COVID-19 crisis, many employers are taking employees’ temperatures and asking them general health-related questions as they report to work. A relevant question that often arises in light of this activity is: How do the requirements of the Health Insurance Portability and...
The IRS recently issued another notice extending tax deadlines because of the COVID-19 pandemic. Notice 2020-35 supplements IRS Notice 2020-23 and earlier guidance by extending the deadlines for certain additional time-sensitive actions relating to employment taxes; exempt organizations; employee benefit plans, including 401(k)s; Health Savings...
The term “work-life balance” has been around for decades. For much of that time, the struggle to attain this elusive equilibrium has typically involved having too much ‘work’ and not enough ‘life.’ Employers have been urged to, among other things, create dynamic paid-time-off policies and...
The COVID-19 pandemic has forced many people to cancel or postpone vacations as well as travel plans to visit friends and family. While staying home to stay safe — and, often, to telework — many employees may not use as much paid time off (PTO)...