A 401(k) plan, or some other type of retirement savings vehicle, has become imperative for most employers. Among the biggest challenges organizations face when implementing a 401(k) is managing the complex array of IRS rules for nondiscrimination testing regarding elective deferrals and matching contributions. Some employers...
The Families First Coronavirus Response Act (FFCRA) was among the first major laws enacted in response to the COVID-19 pandemic. It allows employees paid sick time and paid family leave time to care for themselves or loved ones during the ongoing public health crisis. In...
Many employers use cafeteria plans to offer employees a menu of benefits from which to choose. Under Section 125 of the Internal Revenue Code, participants in a cafeteria plan must be permitted to opt for at least one taxable benefit (such as cash) and one...
A multiemployer pension is generally a defined benefit plan to which more than one employer is required to contribute and is maintained pursuant to a collective bargaining agreement. Many multiemployer pensions are expected to become insolvent in coming years. In fact, because of the number of...
The U.S. Department of Labor (DOL) recently issued the Employee Benefits Security Administration Disaster Relief Notice 2021-01 (Notice 2021-01), which is of interest to employers. It clarifies the duration of certain COVID-19-related deadline extensions that apply to health care benefits plans. Extensions to Continue The DOL and...
Among the hottest human resources issues of the last year or two has been diversity and inclusion. The term refers to an employer’s conscious and conscientious effort to create a working environment in which all employees — regardless of background, identity, or beliefs — are...
For employers that still maintain a pension plan, losing contact with former employees who are vested can be problematic. The issue typically becomes most acute when it is time for those participants to begin receiving their required minimum distributions (RMDs). Everyone’s Problem From a plan sponsor perspective,...
For employers, the events of the past year have been a great accelerator. Workplace changes that may have otherwise taken years to evolve have occurred quickly. One example is remote work. Many employees who would not have seriously considered working remotely had to pivot and...
The U.S. Department of Labor (DOL) recently announced the 2021 annual adjustments to civil monetary penalties for a wide range of benefits-related violations. Legislation enacted in 2015 requires annual adjustments to certain penalty amounts by January 15 of each year. The 2021 adjustments are effective...
The problem of presenteeism is not new. It has been estimated as costing U.S. employers more than $150 billion annually, according to ‘the American Productivity Audit,’ a 2019 phone survey of 29,000 adult employees by a Pennsylvania health system. And that was before the pandemic. The...