As the coronavirus pandemic continues within the United States, late in 2020, the government passed the Consolidated Appropriations Act, 2021 (CAA). The act provided extended economic relief to businesses and individuals due to the continuation of the pandemic.
For employers, the CAA contained provisions that impacted several aspects of health and welfare offerings. Namely, the bill impacts the following employee benefit provisions: health and dependent care accounts (FSAs); surprise medical billing (the cessation of); health care transparency rules; mental health parity; and retirement plans. Some of the provisions took effect immediately while others will have a future effective date.
In addition, the CAA set forth some important tax provisions related to paid family, medical leave, health coverage tax credits, employee retention credits, student loan repayments, and business meal deductions.
The Compliance Overview provides a detailed summary impact on employee benefits and the above referenced provisions as well as helpful links.
Consult the Cowden team to help with understanding the legislation and the impacts on your organization.