Reporting Developments Affecting Employee Benefits and Executive Compensation
The Infrastructure Investment and Jobs Act (the “IIJA”), which was signed by President Biden on November 15, 2021, retroactively eliminates an employer’s ability to claim the employee retention credit (“ERC”) for eligible wages paid during the fourth quarter of 2021.
Read MoreThe Internal Revenue Service announced the 2022 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2022. Most of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the annual compensation limit under 401(a)(17) and the maximum annual contribution limit under Code Section 415(c) will increase from 2021 limits.
Read MoreIn our September 2, 2021 QuickStudy available here, we outlined the various laws governing wellness plans and described how group health plans might structure a premium surcharge for employees who have not received the COVID-19 vaccine to fit within such existing rules. This week, the Departments of Labor, Health and Human Services, and the Treasury (collectively, the “Departments”) issued new Frequently Asked Questions (“FAQs”) that specifically address wellness plan compliance requirements for group health plan premium discounts or surcharges on vaccinated or unvaccinated employees, respectively.
Read MoreThe Internal Revenue Service recently announced that electronic or digital signatures will be accepted for Code Section 83(b) elections. This relief is part of the IRS’s response to the COVID-19 pandemic and is temporary.
Read MoreOn August 23, 2021, the U.S. Food and Drug Administration approved the first COVID-19 vaccine for the prevention of COVID-19 disease in individuals 16 years of age and older. The vaccine, which has been referred to as the Pfizer-BioNTech COVID-19 Vaccine and has been available only under an emergency use authorization up to now, will be marketed under the brand name Comirnaty.
Read MoreThe U.S. Department of Labor (“DOL”) recently issued guidance on best practices for maintaining cybersecurity directed to plan sponsors, fiduciaries, record-keepers and participants of employee benefit plans governed by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). While some prior cybersecurity guidance has been issued for certain employee benefit plans governed by ERISA , this is the first guidance issued by the Employee Benefits Security Administration (EBSA) of the DOL related to cybersecurity.
Read MoreOn July 26, 2021, the IRS issued Notice 2021-46 (the “Notice”), which provides new guidance in the form of 11 questions and answers on the COBRA premium subsidy and the related tax credit under the American Rescue Plan Act of 2021 (“ARPA”). The Notice expands on previous guidance provided under Notice 2021-31.
Read MoreAs the COVID-19 pandemic drags on, administrators of defined benefit pension plans continue to field questions about the notary requirement related to certain participant and spousal elections. For qualified retirement plans subject to the qualified joint and survivor annuity rules (such as defined benefit pension plans), an alternative form of payment may be selected by a participant if the participant’s spouse consents in writing and the spouse’s signature is witnessed in the physical presence of a plan representative or a notary public.
Read MoreThe IRS recently issued Revenue Procedure 2021-30, which updates the correction program under the Employee Plans Compliance Resolution System (EPCRS). EPCRS permits plan sponsors to correct failures in the form and operation of retirement plans intended to satisfy the requirements of Sections 401(a), 403(a), 403(b), 408(k) or 408(p) of the Internal Revenue Code.
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