October 22, 2020 – HR News Alerts

Borrowers and Lenders May Rely on the Guidance Provided in the New FAQs

On Oct. 13, 2020, the Small Business Administration (SBA) published a new set of answers to frequently asked questions about the forgiveness of loans issued under the federal Paycheck Protection Program (PPP).

The PPP was created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) as a response to the current COVID-19 pandemic and was designed to provide a direct incentive for employers to keep their workers on the payroll. Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

By law, the PPP closed on Aug. 8, 2020. The PPP operated by issuing loans to small employers. These PPP loans may be forgiven if the employee retention and fund use criteria for these loans are met.

The SBA, in consultation with the Department of the Treasury, is providing this guidance to address borrower and lender questions concerning forgiveness of PPP loans, as provided for under section 1106 of the CARES Act, as amended by the Paycheck Protection Program Flexibility Act (Flexibility Act).

Employers that received loans through the PPP should review these FAQs carefully as they submit their applications for forgiveness of these loans. PPP loans will be fully forgiven if the funds were used for payroll costs, interest on mortgages, rent and utilities.

© 2020 HR 360, Inc.

October 22, 2020 – HR News Alerts

New Regulations Would Increase the Agency’s Authority to Enforce COVID-19 Safety Standards

On Sept. 17, 2020, the California Occupational Safety and Health Standards Board (the Board), part of the California Division of Occupational Safety and Health (Cal/OSHA), approved a petition to draft and submit for review a new COVID-19 emergency workplace safety standard (the Standard). The Standard would protect California workers not covered by the Aerosol Transmissible Disease standards (Section 5199) from exposure to COVID-19.

Petition 583

Petition No. 583 requests that the new workplace safety regulation:

• Establish a framework parallel to Cal/OSHA’s Injury Illness Prevention Program (IIPP), which requires a written employee protection plan;
• Create procedures to identify and evaluate COVID-19 hazards and exposure risks, as well as procedures to control the hazard of exposure;
• Create procedures to respond to employees exposed to or diagnosed with COVID-19 and employees with COVID-19 symptoms; and
• Establish a job hazard analysis to track modes of COVID-19 workplace transmission and adopt preventive measures to minimize risk.

Next Steps for Employers

Cal/OSHA and the Board will work together to submit a proposal for an emergency standard that covers all employees not covered by Section 5199. The proposal will be considered at the Nov. 19 Board meeting.

The Board has expressed its opinion that the new regulations would facilitate compliance by providing clearer standards that employers and employees must follow. New regulations would also increase Cal/OSHA’s authority to enforce COVID-19 workplace safety standards.
© 2020 HR 360, Inc.

October 22, 2020 – HR News Alerts

Benefit Becomes Available Jan. 1

New York state has published frequently asked questions (FAQs) about its new paid sick leave (PSL) law, covering 11 different topic areas. Under the law, employees of covered employers will be able to take 40 – 56 hours of leave, depending on employer size, beginning Jan. 1, 2021. Employees began accruing leave on Sept. 30, 2020.

Answers about PSL use when an employer is closed due to a public health emergency (varies by circumstance) and telecommuting (can be offered as an alternative to using PSL), may be of special interest to employers during the COVID-19 pandemic. Workers are covered by the PSL law when physically working in New York, according to the FAQs, even if the employer is located somewhere else.

The FAQs were published on the state’s new PSL website, which includes additional employer resources.

© 2020 HR 360, Inc.

October 20, 2020 – Health Care Reform Update

2020 ACA Reporting is Due in Early 2021

The IRS has released final 2020 forms and instructions for use in early 2021 to report under IRS Code Sections 6055 and 6056 for the 2020 calendar year.

• 2020 Form 1094-B and Form 1095-B (and related instructions) will be used by providers of minimum essential coverage (MEC), including self-insured plan sponsors that are not ALEs, to report under Section 6055.
• 2020 Form 1094-C and Form 1095-C (and related instructions) will be used by applicable large employers (ALEs) to report under Section 6056, as well as for combined Section 6055 and 6056 reporting by ALEs who sponsor self-insured plans.

The forms and instructions include a number of changes and clarifications related to 2020 reporting.

• The deadline for furnishing statements to individuals under Sections 6055 and 6056 has been extended to March 2, 2021.
• Good faith relief from penalties for reporting incorrect or incomplete information has been extended to 2020 reporting.
• The IRS has extended relief from penalties for reporting entities that furnish individual statements under Section 6055 only upon request for 2020 calendar year reporting.
• The “Plan Start Month” box on Form 1095-C is now required for 2020 reporting.
• Certain additions were made to the 2020 Forms 1095-B and 1095-C related to individual coverage HRAs (ICHRAs). Form 1095-B includes a new code G to be used on line 8, Origin of the Health Coverage, to identify coverage under an ICHRA. In addition, Form 1095-C includes new codes in Code Series 1 for reporting offers of ICHRAs, as well as new lines for reporting required information.

Employers should become familiar with these forms and instructions for reporting for the 2020 calendar year. Individual statements must be furnished by March 2, 2021, and IRS returns must be filed by Feb. 28, 2021 (March 31, 2021, if filed electronically).

© 2020 HR 360, Inc.

October 20, 2020 – HR News Alerts

The New Rate Becomes Effective Jan. 1, 2021

Florida has published new minimum wage posters announcing an $8.65 per hour minimum wage rate for 2021. Florida’s minimum wage rate is adjusted annually to reflect changes in the cost of living. However, employers should be mindful of local laws, ordinances and any rule or regulation that may increase an employee’s minimum wage rate.

Florida employers should review and adjust their payroll systems to make sure nonexempt employees receive wages that are at least equal to the state’s minimum wage rate.

Florida allows employers to pay their tipped employees a minimum wage rate of at least $5.63 per hour.

A tipped employee is an employee who engages in an occupation where he or she customarily and regularly receives more than $30 per month in tips.  Employers are required to subsidize a tipped employee’s minimum wage rate if the employee’s tips and gratuities are insufficient to allow the employee to receive wages that are at least equal to the state’s minimum wage rate.

Posting Requirement

Employers must display the 2021 minimum wage poster in a location where employees can easily see it. The Florida 2021 minimum wage poster is available in English, Spanish and Creole.

© 2020 HR 360, Inc.

October 16, 2020 – HR News Alerts

Amendments Take Effect Jan. 1

California has expanded its employee leave protections for victims of domestic violence, sexual assault and stalking to apply to a broader category of victims, in amendments that take effect Jan. 1, 2021.

All employers will be subject to the prohibition on discharge, discrimination or retaliation against employees who are victims of crime or abuse and take time off time off from work to seek relief to help ensure the health, safety, or welfare of the victim or victim’s child. (Currently, this protection extends only to employees who are victims of domestic violence, sexual assault, or stalking.)

In addition, the amendments expand the reach of the current law preventing employers with more than 25 employees from discharging, or discriminating or retaliating against, employees who take time off to seek specified services as a result of being a victim of domestic violence, sexual assault or stalking. The services include medical attention and psychological counseling, among others. Under the new amendments, these protections apply more generally to employees who are victims of crime or abuse.

The amendments define victim to mean the victim of crime or abuse that causes physical injury, or mental injury and the threat of physical injury. Victims also include employees whose immediate family member was killed in a crime. The protections apply regardless of whether anyone is arrested, prosecuted or convicted for the crime.

© 2020 HR 360, Inc.

October 15, 2020 – Health Care Reform Update

2020 ACA Reporting is Due in Early 2021

The IRS has released draft 2020 instructions for Forms 1094-B and 1095-B, and draft 2020 instructions for Forms 1094-C and 1095-C that employers will use in early 2021 to report under IRS Code Sections 6055 and 6056 for the 2020 calendar year. Draft forms related to this reporting were previously released in July 2020.

The draft instructions include a number of changes and clarifications related to 2020 reporting.

• The deadline for furnishing statements to individuals under Sections 6055 and 6056 has been extended to March 2, 2021.
• Good faith relief from penalties for reporting incorrect or incomplete information has been extended to 2020 reporting.
• The IRS has extended relief from penalties for reporting entities that furnish individual statements under Section 6055 only upon request for 2020 calendar year reporting.
• The “Plan Start Month” box on Form 1095-C is now required for 2020 reporting.
• Certain additions were made to the 2020 draft Forms 1095-B and 1095-C related to individual coverage HRAs (ICHRAs). Draft Form 1095-B includes a new code G to be used on line 8, Origin of Health Coverage, to identify coverage under an ICHRA. In addition, draft Form 1095-C includes additional codes in Code Series 1 for reporting offers of ICHRAs, as well as new lines for reporting required information.

Employers should become familiar with these forms and instructions for reporting for the 2020 calendar year. However, these are draft versions only, and should not be filed with the IRS or relied upon for filing.

© 2020 HR 360, Inc.