Regulatory Roundup December 2020

December was a pivotal month in both COVID-19 and year-end legislation. With such an active output of new bills, our team is here to outline what you need to know going into 2021.

The largest piece of legislation passed by both Congress and the President came at the end of the month with the Consolidated Appropriations Act of 2021 (CAA). The Act provides additional funding for the Paycheck Protection Program (PPP), extends Employee Retention Credits and the Families First Coronavirus Response Act (FFCRA), and provides temporary relief for Healthcare FSAs and Dependent Care FSAs. Learn more about CAA and what Paylocity is doing to support our clients during this time.

Along with legislation related to pandemic relief, it’s been a busy time for year-end measures. The IRS recently released new standard mileage rates for cars, vans, pickups, or panel trucks. Outside of mileage in service of charitable organizations, which remained the same, all other rates have decreased. View all rates here.

On a state level, Massachusetts held a series of webinars for employees and employers highlighting the ins and outs of the Department of Family and Medical Leave. For those who missed out, details are available on the Department’s official site.

Here is a full list of this month’s compliance and tax alerts:

COVID-19

• President Trump signs Coronavirus relief and government funding package
• Legislative updates related to COVID-19
• COVID relief for van pools

Year-End

• Standard mileage rates released for 2021
• New tax laws – including Social Security wage base limits – coming into effect
• Social Security Administration (SSA) sending notices for corrections

Local

• Employers with California employees must file compensation data reports
• Multnomah County imposes tax to fund tuition-free preschool
• Massachusetts offers webinars detailing family and medical leave

Visit our Return to Work page to browse our resources to help you engage, rehire, and recruit in this new environment. You can also check out our Legislative Updates Related to Coronavirus (COVID-19) for a comprehensive summary of legislative changes and how Paylocity has responded with updates to our product to help you stay compliant. For the latest information and resources related to the coronavirus, check our COVID-19 Resources page often.

Be sure to bookmark our resource library and come back monthly for Regulatory Roundups of tax and compliance alerts you need to know. Don't forget to also follow us on Facebook, LinkedIn, and Twitter for urgent updates.

This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney, or Advisor.