2021 Is Upon Us - Thank Goodness!
With any new year, there are a multitude of little changes that can have big impacts on your business. Because of the pandemic, there are even more than in other years.
Here are a few changes to consider as we roll into 2021:
The IRS has updated the W4 form for 2021. Please make sure you work with your payroll provider to have the most recent and up-to-date tax form information.
W2s are required to be mailed out by January 31, 2021. Please make sure that your employees have updated their demographic information (such as an address change) from 2020. Even if their paychecks are directly deposited into a bank account, you’ll want to make sure their W2s are sent to the right place and that the correct information is on their W2.
Labor Law Posters
There are more than 75 state and federal employment law posting changes (mandatory and minor) each year. If you have any employees (even just one), you are required by law to post the mandatory Federal, State, and OSHA postings.
Contact us to inquire about ordering State, Federal, and Local 2021 required posters.
2021 Minimum Wage Changes
There are several states and local municipalities instituting minimum wage increases in 2021. It’s time to review your payroll to determine if your business and employees are affected by these changes. Failure to comply with minimum wage laws may result in substantial penalties.
Also of note: Many states have established exemptions from state minimum wage and/or overtime requirements under state law where employees are paid a certain minimum weekly salary or certain minimum hourly amount and perform certain duties. Email firstname.lastname@example.org for a complete list of these changes.
FSA and HSA Updates
Due to the COVID-19 pandemic, the IRS and Treasury Department have instituted new guidelines and allowances that apply to FSAs for just 2020.
Employers can extend their 2019 FSA grace period to December 31, 2020 (if their plan year follows the traditional calendar year), and June 30, 2021 if they have a split-year schedule. Employees can rollover up to $550 of their 2020 FSA funds to 2021.
For 2021 there are also changes to HSA plans. The individual coverage contribution limit has been raised an additional $50 for a total of $3,600 and the family coverage limit is $7,200. If you're 55 or older, you can put an extra $1,000 in your HSA.