With many thanks to Chris Guldberg for this post.
On May 12, 2020, the IRS released Notice 2020-29 (the “Notice”) providing greater flexibility to make mid-year election changes under Code Section 125 cafeteria plans during 2020 with respect to employer-provided health coverage and health and dependent care flexible spending accounts (“FSAs”). The notice also provides additional time in which unused amounts in FSAs can be used to pay expenses and avoid forfeiture.
Mid-year Election Changes
As background, cafeteria plans are the vehicle that allow employees to elect to pay their share of benefit premium costs for certain welfare benefits (for example, the employee premium portion paid for medical coverage) on a pre-tax basis rather than paying for those costs on an after-tax basis. In general, employee cafeteria plan elections must be made prior to the first day of the plan year and cannot be changed during the plan year except for specific change in status type events permitted under the relevant regulations (for example, the birth of a child).Continue Reading Increased Flexibility for Taxpayers in Section 125 Cafeteria Plans in Response to COVID-19
With many thanks to Chris Guldberg for this post.
Employers considering COVID-19-related layoffs and RIFs right now should add one more item to their checklist of considerations: the possibility of inadvertently triggering a “partial termination” of their tax-qualified retirement plan.
Where plan participant numbers decrease substantially, the plan may incur what’s known as a “partial termination.” This is significant because, once triggered, the IRS requires the benefits of all “affected employees” be fully vested. Failure to provide such vesting could put the plan’s tax-qualified status at risk.Continue Reading Beware — COVID-19 Layoffs May Trigger Liability for Partial Plan Terminations
On April 16, 2020, California Governor Gavin Newsom signed Executive Order N-51-20 (“Order”) requiring employers in the food sector to:
The type of workers included ranges from farmworkers to those in the retail food supply chain, including pick-up, delivery, supply, packaging, retail, or preparation. Eligible workers thus include grocery workers, restaurant or fast food workers, workers at warehouses where food is stored, and workers who pick-up or deliver any food items.Continue Reading New California Paid Sick Leave For Food Sector Workers
On April 22, 2020, the President signed a Proclamation to suspend the issuance of immigrant visas (i.e., non-temporary visas) for the next 60 days to individuals who are currently outside of the United States and do not currently have an immigrant visa. The proclamation is not a broad restriction on all immigration that many feared might be the case from comments earlier this week. Since Embassies and Consulates remain closed, the status for immigrant visa applicants abroad remains unchanged. Yet, as we saw with the 2017 Buy American and Hire American Executive Order, the most recent Proclamation, intended to protect the U.S. workforce amidst the COVID-19 related economic downturn, could have a much wider impact beyond the narrow scope of the proclamation itself.
Who is impacted?Continue Reading Immigration in the News: Latest COVID-19 Related Executive Order on Immigration Impacts Immigrant Visa Applicants Abroad
The COVID-19 pandemic has caused a rapid, severe, and unprecedented disruption to the movement of workers around the globe. In an effort to impede the spread, many governments have implemented travel and immigration restrictions that have impacted visa processing, work authorization, and cross-border entry for foreign nationals employed by multinational companies.
In order to allow
With our thanks to Chris Guldberg for this post.
The financial fallout from the outbreak of COVID-19 has unfortunately forced employers to turn to layoffs and furloughs. Many employers facing these decisions are looking for cost effective ways to mitigate the financial impact on affected employees. A supplemental unemployment benefit plan (“SUB Plan”) may be one way to assist employees while generating some cost savings for the company.
A SUB Plan is a unique type of severance benefit plan that permits employers to supplement state unemployment benefits on an employment tax-favored basis. The employer can make up the difference between an employee’s normal wages and state unemployment benefits and, unlike traditional severance, payments under a SUB Plan are treated as a benefit rather than wages and are thus not subject to FICA or FUTA for the employer or employee.Continue Reading An Alternative to Traditional Severance: SUB Plans
Due to the coronavirus and the resulting travel restrictions, many foreign nationals may be unwilling or unable to return to their home country. This unfortunate reality is particularly problematic for foreign nationals whose immigration status may be expiring in the near future and are unable to extend their status. Thus far, the U.S. Department of Homeland Security has issued no policies or other guidance granting widespread relief for foreign nationals with upcoming immigration status expirations. Nevertheless, if a foreign national’s immigration status is expiring in the near future, there are a few actions that can be taken at this time.
Contact the Nearest Embassy or Consulate for Your Home Country
Foreign nationals should first contact the nearest Embassy or Consulate of their home country to determine if any assistance is being provided by their home country to similarly positioned travelers. A foreign national’s home country may have options for returning to the foreign national’s home country that are only available to citizens. These kinds of options may offer the best chance to return to the foreign national’s home country in the short term.Continue Reading Options Available to the ‘Stranded’ Traveler in the US
With thanks to our Global Immigration & Mobility team for this alert.
The FY 2021 US H-1B Lottery is now complete and employers have been notified whether their requests to file H-1B Cap Subject Petitions were accepted under USCIS’ new electronic preregistration system. While one option may be to file an H-1B Cap registration request
ICE Releases Guidance Relaxing I-9 Requirements For Certain Employers
The US Department of Homeland Security (DHS) has issued guidance that provides flexibility for certain employers to comply with Form I-9 requirements due to COVID-19.
Which employers does the new guidance apply to?
The relaxed requirements apply only to employers and workplaces operating remotely due to COVID-19. If there are employees physically present at a work locations, no exceptions will apply. However, if newly hired employees or existing employees are subject to COVID-19 quarantine or lockdown protocols, DHS will evaluate on a case-by-case basis.Continue Reading UPDATE: Onboarding New Employees During the COVID-19 Pandemic ICE Releases Guidance Relaxing I-9 Requirements For Certain Employers
