HCM Year-End Review

As 2020 comes to a close, we take a look at what legislative requirements have employer impact. Below are summaries of what to expect and prepare for beginning January 1, 2021 through June 30, 2021.

Federal

EEO-1 Filing to Resume

• The EEOC will be collecting reports for both 2019 and 2020 during 2021. 
• The EEOC expects to begin collecting the 2019 EEO-1 Component 1 data along with the 2020 EEO-1 Component 1 data in March 2021 and will notify filers of the precise date the collections will open as soon as it is available.
  
• The EEOC is not collecting Component 2 Pay Data for 2019 or 2020, or future filing periods at this.

2021 Inflation adjustments to contribution limits

• Health Savings Account (HSA) Contribution Limits: the annual contribution limit for self-only HSA is $3,600 and the Family contribution limit is $7,200.

Click here for more information on HSA limits.

PEAK ID: PCTY-87498

• Flexible Spending Account (FSA) Limits: employees can contribute up to $2,750 to their health FSAs, just as they could in 2020. The limit also applies to limited-purpose FSAs.

• Qualified Transportation Fringe Benefit Plan Limits: employees can contribute up to $270/month towards commuter and transit benefits and$270/month towards qualified parking benefits.
• Qualified Small  Employer  Health  Reimbursement  Arrangement  (QSEHRA): employers will be able to reimburse up to $5,300 for single coverage and $10,700 for family coverages under a This is a $50 increase for single coverage and $100 increase for family coverage.

Click here for information about the QSEHRA limits.

• Excepted Benefit Health Reimbursement Arrangement (EBHRA): employers will be able to reimburse up to $1,800 a year under an EBHRA.

Click here for more information on tax inflation adjustments from the IRS

PEAK ID: PCTY-93169

California

Consumer Protection Act

• Most recently amended by the California Privacy Rights and Enforcement Act of 2020 (CPRA).
• The CPRA goes into effect on January 1, 2023, with some provisions requiring a 12-month look-back period that would start January 1, 2022.
• The CPRA extends the CCPA’s exemption of employee data until January 1, 2023.
• The CPRA also extends the CCPA’s business to business exemption until January 1, 2023.
• The CCPA provisions remain in effect until the CPRA provisions are effective.

Click here for more information about the Consumer Protection Act.

PEAK ID: PCTY-93973

Pay Data Reporting

• Effective January 1, 2021 California employers are required to begin filing pay data information by March 31 of each year.
• Private employers with 100 employees or more who are required to file an annual EEO-1 report under federal law to submit an annual report to the California Department of Fair Employment and Housing (DFEH).
• The pay data report must include the number of employees by race, ethnicity, and sex in 10 job categories.
• The data must be for a single pay period between October 1 and December 31 of the previous year.
• Based on W-2 information, employers must include employee compensation in one of 11 pay bands used by the United States Bureau of Labor Statistics in its Occupational Employee Survey, by race, ethnicity, and sex.

Click here for more information about Pay Data reporting.

PEAK ID: PCTY-92179

Family Rights Act Expansion

• Effective January 1, 2021.
• Expands coverage and family member definition.
• Removes two provisions from the original bill text.
• Small employers are eligible to participate in a Mediation Pilot Program if they receive a Mediation Pilot Program receive a right-to-sue letter.

Click here for more information about the Family Rights Act expansion.

PEAK ID: PCTY-91723

Paid Family Leave Expansion

• Effective January 1, 2021.
• PFL will expand to include claim coverage for Military Assist.
• This coverage is for employees who need time off to participate in qualifying events as a result of a family member's military deployment.

Click here for more information about Paid Family Leave expansion.

Colorado

Healthy Families and Workplaces Act

• Effective January 1, 2021
• Paid Sick and Safe time accrual of one hour per 30 hours worked
• Accrual max of 48 hours; use limit of 48 hours
• Public Health Emergency Leave – awarded based upon the amount of hours typically worked

Click here for more information about the Healthy Families and  Workplaces act.

PEAK ID: PCTY-89355

Equal Pay Transparency Rules

• Effective January 1, 2021, All Colorado employers are required to disclose compensation or a range of compensation on all job postings, including promotions, for positions in Colorado.
• All Colorado employers are required to provide a general description of all benefits and other compensation to be offered on all job postings, including promotions, for positions in Colorado.
• The Colorado Department of Labor and Employment has issued guidance on submitting and responding to a wage and hour complaint.

Click here for more information about the Equal Pay Transparency act.

PEAK ID: PCTY-93961

Secure Savings Program

• Colorado Governor signed SB20-2020 which establishes the Colorado Secure Savings Program to implement a statewide retirement savings program.
• The Act tasks the Colorado Secure Savings Board with developing and administering the program.
• The effective date is still to be determined but anticipated in 2021.

Click here for more information about Secure Savings program.

PEAK ID: PCTY 94444

Connecticut

Paid Family and Medical Leave

• Contributions effective January 1, 2021 with benefits becoming available January 1, 2022.
• Employers who employee one or more individuals are required to provide paid family and medical leave
• Employees will contribute ½ of 1% of their wages each pay Employers have no contribution requirements.

Click here for more information about Paid Family and Medical leave.

PEAK ID: PCTY-76228

Florida

2021 E-Verify and Employment Verification Requirements

• Public employers or contractors or subcontractors must verify employment eligibility, by E-Verify beginning January 1, 2021.
• Private employers must use E-Verify or other comparable methods to verify employment eligibility for employees beginning January 1, 2021.

Click here for more information about 2021 E-Verify and Employment Verification.

PEAK ID: PCTY-86372

Maine

Paid Sick Leave

• Effective January 1, 2021.
• Required for employers with 10 or more employees who have worked 120 days in any calendar year
• Employees accrue one hour for every 40 hours worked.
• Employees can accrue up to 40 hours of paid sick leave within a 12-month benefit period.

Click here for more information about Paid Sick leave.

PEAK ID: PCTY-76226

Massachusetts

Paid Family and Medical Leave Benefits

• Employee benefits begin on January 1, 2021.
• Paid family leave may be taken to: care for a sick family member; bond with a newborn child; bond with a child after adoption or foster care placement; manage family affairs when a family member is on active duty in the armed forces
• Paid medical leave may be taken to: manage a personal serious injury or illness.
• The maximum total amount that an employee can receive in PFML benefits right now is $850 per week.

Click here for more information about Paid Family and Medical Leave benefits.

PEAK ID: PCTY-68653

New York

PFML Benefits & Employee Contribution Increase

• Effective January 1, 2021.
• Employees will have access to up to 12 weeks of job protected, paid time off.
• Employees taking Paid Family Leave will receive 67% of their average weekly wage, up to a cap of 67% of the current Statewide Average Weekly Wage of $1,450.17.
• The maximum weekly benefit for 2021 is $971.61.
• The contribution is 511% of an employee’s gross wages each pay period. The maximum annual contribution is $385.34.

Click here for more information PFML Benefits and Employee Contributions.

PEAK ID: PCTY-94255

Paid Sick Leave Amendments

Effective September 30, 2020:

• Provide domestic workers with 40 hours of paid safe and sick leave;
• Allow employees to use safe and sick leave as it is accrued;
• Reimburse employees who must pay for required documentation after three consecutive workdays of leave;
• List on employees’ paystubs (or any document issued each pay period) the amounts of accrued and used leave and the total balance of accrued

Effective January 1, 2021:

• Employers with 100 or more employees must provide up to 56 hours of paid
• Employers with four or fewer employees and a net income of $1 million or more must provide PAID

Click here for more information about Paid Sick Leave amendments.

PEAK ID: PCTY-92039

For information from the 2020 Mid-Year Alert, please click here or see PCTY-88749. Thank you for choosing Paylocity as your Payroll Tax and HCM partner.