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,...
If your business sponsors a 401(k) plan, you might someday consider adding designated Roth contributions. Here are some factors to explore when deciding whether such a feature would make sense for your company and its employees. Key Differences Roth contributions differ from other elective deferrals in two...
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...
Over the past year, the importance of leadership at every level of a business has been emphasized. When a crisis such as a pandemic hits, it creates a sort of stress test for not only business owners and executives but also supervisors of departments and...
In late January, the IRS updated Notice 2020-65. It provides guidance regarding an executive memorandum signed last summer that allowed employers to defer the withholding, deposit, and payment of certain payroll tax obligations in 2020. The update reflects the changed deferral rules contained in the...
In mid-January, the IRS issued final regulations that clarify the application of employer shared responsibility provisions under the Affordable Care Act (ACA), as well as nondiscrimination rules, to Health Reimbursement Arrangements (HRAs). The regulations also address Individual Coverage Health Reimbursement Arrangements (ICHRAs). These accounts allow employers...
The Consolidated Appropriations Act (CAA) includes a wide variety of provisions that address the ongoing economic hardships caused by the COVID-19 pandemic. There are so many provisions, in fact, that you may find it challenging to keep track of everything pertinent to your organization. One example...
More and more employers have established 360-degree performance feedback programs to give themselves a broader perspective on how well employees are performing and interacting. Under this model, an employee is evaluated by not only his or her supervisor but also direct reports (if applicable), peers,...