COVID-19: News and Updates |
| Special #35 - May 13, 2020 |
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Articles and Updates Today
- ¶46,948 Companies move to enhance health care and wellbeing programs in response to COVID-19 — SURVEY RESULTS, May 13, 2020
- ¶46,944 DOL issues another UI program letter on frequently asked pandemic compensation questions — AGENCY GUIDANCE, May 13, 2020
- ¶46,936 New Employee Retention Credit helps employers keep employees on payroll — AGENCY GUIDANCE, May 12, 2020
- HRDive Article > Planning a return to the office: What tools businesses can turn to
- Georgia Department of Public Health COVID-19 Daily Status Report
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| | | ¶46,948 Companies move to enhance health care and wellbeing programs in response to COVID-19 — SURVEY RESULTS,
May 13, 2020 from GEA's HR anwsers now
Companies are making enhancements to their health care, wellbeing and leave programs, according to a new Willis Towers Watson survey examining the business impact of COVID-19 on health benefits. The survey, conducted from April 20 – 23, found that nearly half of respondents (47 percent) are enhancing health care benefits, 45 percent are broadening wellbeing programs, and 33 percent plan to make changes to paid time off (PTO) or vacation programs. And while some companies are reducing costs in other ways—furloughs, pay cuts and reductions in 401(k) matching contributions—many are preserving wellbeing plans at a time when employees are facing significant challenges.
“Although most employers anticipate a significant negative impact from COVID-19, many are taking steps to protect the health and wellbeing of their employees,” said Regina Ihrke, senior director and wellbeing leader, North America, Willis Towers Watson. “Employers are doing what they can to support their workers through this difficult time. The pandemic has led to high levels of employee anxiety and stress, so employers are making it easier for employees to get help across all aspects of the wellbeing spectrum.”
Supporting physical and emotional health is a top priority for most employers as 64 percent believe COVID-19 will have a moderate to large impact on employee wellbeing. More than three in four (77 percent) are offering or expanding access to virtual mental health services. Maintaining physical health is also important with 60 percent of employers offering new easy-to-implement virtual solutions such as virtual workouts to support employees who work from home. Another 19 percent are planning or considering these solutions. Half (50 percent) promote healthy nutrition and weight management for at-home employees, and 25 percent are planning or considering adding these programs.
The survey found a majority of employers don’t expect their health care benefit costs to rise substantially. Fifty-seven percent of respondents anticipate a small to moderate increase in costs, 24 percent expect no increase or decrease, and only 3 percent expect a large increase. A separate Willis Towers Watson actuarial analysis found employer health care benefit costs could fall by as much as 4.5 percent this year as demand for nonessential medical care has declined during the COVID-19 crisis. Over six in 10 (61 percent) employers have made or will make changes to their benefit programs over the next six months with two out of five (38 percent) planning to revise their health care strategies for 2021.
Employers are also prepared to help employees with COVID-19-related costs. Seventy percent have waived telehealth costs, 69 percent have expanded reimbursements for over-the-counter drug costs through flexible spending accounts or health reimbursement arrangements, and 62 percent have waived or reduced COVID-19 treatment costs.
When it comes to leave programs, 42 percent of employers have made or are planning to make changes to PTO, vacation and sick-day programs to enhance employee flexibility and lessen the buildup of accrued days by year-end. To minimize lost days, 24 percent of employers are planning to increase carryover limits, and 21 percent are allowing negative balances. Sixteen percent require employees to take PTO or vacation time to reduce year-end buildup, and 22 percent are planning or considering this requirement. Due to the COVID-19 pandemic, 12 percent are allowing donation to other employees, and 15 percent are planning or considering a donation program.
“Leave policies have become incredibly important to those employees juggling new work arrangements and family situations such as children being home from school,” said Rachael McCann, senior director, Health and Benefits, Willis Towers Watson. “Employers recognize that these programs are relatively easy and inexpensive to change and generate a great deal of goodwill. By taking positive actions around health, wellbeing and leave, employers are putting people first. And that’s an investment that’s likely to build employee loyalty, raise engagement and enhance future productivity.”
Source: Willis Towers Watson.
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| | | ¶46,944 DOL issues another UI program letter on frequently asked pandemic compensation questions — AGENCY GUIDANCE,
May 13, 2020
From GEA's HR anwsers now
On May 9, 2020, the U.S. Department of Labor published a program letter which answered a series of questions raised by states regarding the Federal Pandemic Unemployment Compensation (FPUC) program. The FPUC program, authorized by Section 2104 of the CARES Act, provides an additional $600 weekly payment to certain eligible individuals who are receiving other qualifying benefits.
The responses are split into three categories: Issuing Payments, Overpayments and Recovery, and Financial Information and Reporting. Some of the answers provided by DOL in UIPL No. 15-20 include:
Question: Is the state required to make FPUC payments weekly?
Answer: The state must make FPUC payments on the same schedule as the state’s regular UC payments. If the state pays regular UC on a bi-weekly basis, it can maintain that same schedule for FPUC.
Question: Is an individual who is working part-time, or has gone back to work part-time, and is collecting partial UC benefits for a week eligible for FPUC?
Answer: Yes. An individual working part-time who otherwise meets state eligibility requirements for the underlying benefit is eligible to receive the FPUC payment.
Question: Does the additional FPUC payment affect how much a person could earn while working par- time before a deduction is made from the weekly underlying benefit payment?
Answer: No. All earnings are deducted from the underlying UC benefit payment. If an individual’s earnings reduce the week’s underlying benefit payment to zero, the individual would not be eligible for FPUC for that week.
Question: Are FPUC benefits subject to federal income tax withholding?
Answer: Yes. Both the underlying benefit payment and the FPUC benefit payment are subject to federal income tax withholding. Individuals may elect to have federal withholding deducted from their FPUC payments separately from the withholding for the underlying benefit payments.
Question: May the state suspend benefit offsets to provide relief to unemployed individuals?
Answer: No. The state may not suspend benefit offsets. The Middle Class Tax Relief and Job Creation Act of 2012 changed the benefit offset provision from "may" to "shall" under both Section 3304(a)(4)(D), FUTA, and Section 303(g)(1), SSA, so federal UI law requires states to offset benefits.
Question: How should states handle prosecutions of FPUC fraud overpayments?
Answer: Individuals who fraudulently obtain FPUC benefits are subject to prosecution under 18 U.S.C. § 1001, among other federal criminal statutes. States must pursue FPUC fraud cases in the same manner as all other federal UC fraud cases. For referrals of fraud cases to the U.S. Department of Labor’s Office of Inspector General (OIG), states should follow the guidance provided in UIPL No. 29-05.
"With all 50 states and two territories already providing this important benefit to eligible claimants, we hope today’s guidance assists these states and territories in continuing to faithfully execute this program during this challenging time," said Assistant Secretary for Employment and Training John P. Pallasch in a news release. "The U.S. Department of Labor will continue to stand behind states as they administer this and other vital CARES Act programs, and today’s guidance is yet another example of our ongoing commitment."
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| | | | ¶46,936 New Employee Retention Credit helps employers keep employees on payroll — AGENCY GUIDANCE,
May 12, 2020 from GEA's HR anwsers now The IRS provided guidance to employers affected by COVID-19 about the Employee Retention Credit. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) encourages businesses to keep employees on their payroll by providing them an Employee Retention Credit. Employers that have experienced an economic hardship due to COVID-19 may claim this credit for wages paid after March 12, 2020, and before January 1, 2021, the guidance notes. This includes tax-exempt organizations, employers with suspended operations due to a government order related to COVID-19 and those that have experienced a significant decline in gross receipts.
Amount of credit. The tax credit amount is 50-percent of up to $10,000 in qualified wages paid to an employee. The employer’s maximum credit for qualified wages paid to any employee is $5,000. Further, qualified wages include the cost of employer-provided health care. Moreover, the amount of qualified wages for which an eligible employer may claim the Employee Retention Credit doesn’t include the amount of qualified sick and family leave wages for which the employer received tax credits under the Families First Coronavirus Response Act (FFCRA). Qualified wages vary based on the average number of the employer’s full-time employees in 2019. If the employer had 100 or fewer employees on average in 2019, the credit would be based on wages paid to all employees, regardless if they worked or not. If the employer had more than 100 employees on average in 2019, the credit would be allowed only for wages paid to employees for time they did not work. Additionally, in each case, the wages that qualify would be wages paid for a calendar quarter in which the employer experiences an economic hardship.
Claiming the credit. To claim the credit, employers must report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns, usually Form 941, Employer’s Quarterly Federal Tax Return, beginning with the second quarter of 2020. Additionally, if employers do not have enough federal employment taxes to cover the amount of the credit, after they have deferred deposits of employer social security taxes, they may request an advance payment of the credit from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19.
Additional information. Finally, more information regarding this can be found in the following sites: Coronavirus Tax Relief, Employee Retention Credit FAQs.
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| | | Georgia Department of Public Health COVID-19 Daily Status Report
Georgia Department of Public Health COVID-19 Daily Status Report For: 05/13/2020
These data represent confirmed cases of COVID-19 reported to the Georgia Department of Public Health as of 05/13/2020 12:22:57.
A confirmed case is defined as a person who has tested positive for 2019 novel coronavirus. (Total tests 273,904)
COVID-19 Confirmed Cases:
Total 35,332 Hospitalized 6,259 Deaths 1,505
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Georgia Employers' Association |
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