Additional Reading: The Pandemic Effects on Employee Benefits in 2020 & 2021

To-Do Date: Mar 16 at 11:59pm

After you complete this week's reading assignment (Chapter One of our textbook), please watch this video and the bullet points below to understand the changes that impacted employee benefits in 2020 and 2021 as a result of the Pandemic. It's a good example of how, as HR Professionals, we must remain flexible with the environment around us and how it impacts our employees and companies.

Consolidated Appropriations Act 2021 (CAA)

As a result of the effects of the Coronavirus Pandemic and the fact that most employees could not visit their doctors and dentists or participate in elective procedures, the IRS made provisions for employees and employers by releasing the 2020-29 and 33 notices. In these notices, employers may choose out of their discretion to allow their employees to:

1. Carryover unused FSA balance from the plan year ending in 2020 to 2021, regardless of the amount remaining. 

2. The grace period was extended to 12 months.

3. Participants who terminated in 2020 continued receiving reimbursements of unused money through the end of the plan year.

4. Dcap: Increased the maximum for those aged out during the Pandemic.

5. If the plan had a carryover, it increased to $550 from $500; according to notice 2020-33, this is indexed each year at 20% of the maximum election allowed.

6. Participants could make new elections for employee-sponsored health coverage on a prospective basis if the employee initially declined to elect.

7. Participants could revoke an existing election for employer-sponsored health coverage and make a new election to enroll in different health coverage sponsored by the same employer. This included changing from self-coverage to family coverage.

8. The participants could revoke an existing election for employer-sponsored health coverage provided that they attested in writing that they were enrolled or immediately would enroll in other health coverage not sponsored by an employer.

https://www.lawandtheworkplace.com/2020/12/congress-extends-ffcra-tax-credit-into-2021-declines-to-extend-ffcra-leave