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Regulatory Roundup November 2020

December 01, 2020 Blog Post

Legislative updates from November include year-end fund carryover announcements from the IRS and new legislation for 2021.

As the year ends, legislation across multiple areas of human resources passed on both a federal and state level. With a long and varied list of compliance alerts to sort through, we’re here to quickly compile them all for you in one place.

Since COVID-19 altered the course of many workplaces in 2020, questions naturally arose for the IRS regarding carrying over unused benefits into the new year. For unused parking and transit funds, a new information letter confirms these benefits can remain in the account for future use or applied to another transportation fringe – but cannot be refunded.

A similar announcement was made in regards to unused Dependent Care FSA. While the IRS is not allowing refunds on allotted funds, it is allowing a grace period of 75 days following the plan year.

Looking ahead into 2021, Colorado will align with the rising HR trend of pay transparencyadopting Equal Pay Transparency Rules beginning January 1, 2021. These rules maintain clear salary ranges on job postings – including promotions – within the state, descriptions of benefits, and any other bonuses or commissions coinciding with the position.

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

2020 Year-End Legislation

2021 and Future

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.

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