Regulatory Roundup October 2020November 01, 2020
Legislative updates from October include year-end Form 1094-C and 1095-C updates as well as new FSA limits for open enrollment.
As a new year approaches, so do year end deadlines for HR professionals. October was a critical month for compliance legislation related to year end season, and we’re here to bring you a quick recap of what you need to know.
On October 16, 2020, the IRS released final Form 1094-C and 1095-C with new ACA instructions. Form 1095-C, in particular, had multiple new codes related to individual HRA coverage including an “Age as of January 1” field and Location Safe Harbor Zip Code reporting. The IRS also extended the deadline to furnish Form 1095-C to March 2, 2021, though Paylocity will still distribute in early January as planned.
With open enrollment just around the corner as well, the IRS also announced health FSA, HRA, and other 2021 limits accounting for annual inflation. The new year will see many limits staying the same, and only slight increases in some areas including Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) and maximum carryover limit.
Here is a full list of this month’s compliance and tax alerts:
- Final Form 1094-C, 1095-C and related ACA instructions released
- IRS extends deadline to furnish Form 1095-C
- FSA, HRA, and other 2021 limits announced
Paycheck Protection Program (PPP)
- Governor Newsom amends California Consumer Privacy Act (CCPA)
- New bill requires large employers to report employee compensation data
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.
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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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