Families First Coronavirus Response Act updates are as follows:

Mandated FFCRA leave is still set to expire on December 31, 2020 however there is an extension provision for the 1st quarter of 2021. There are two important extension aspects of the package related to the FFCRA:

• Employers may voluntarily continue to provide FFCRA leave and receive the tax credits associated with any FFCRA leave taken through March 31, 2021. This must be for all employees and not just selected employees. NOTE: If you have worksite employees on leave under the Emergency Family and Medical Leave Expansion Act (EFMLEA) of the FFCRA on Dec. 31, 2020, with potential EFMLEA leave continuing into 2021, a separate communication will be sent with instructions for either voluntarily continuing the leave, returning the worksite employee to work, or using other leave options, like PTO or unpaid leave.
• The voluntary FFCRA extension does not create additional FFCRA hours entitlement for employees to use. This means if an employee has used all their FFCRA hours they will not have additional hours available.

Exempt Employee Salary Threshold

Federal government indicates an exempt salary threshold of $35,568. Certain states, and even NY counties, have changed the salary threshold for an exempt employee. We are staying aware of these changed thresholds on behalf of your employees. Here are the changes made for 2021:

• AK: $43,014.40
• CA: $54,080 for up to 26 EEs, $58,240 for 26+
• CO: $40,500
• ME: $36,450
• NY: $48,750 for Nassau, Suffolk & Westchester Co, $48,750 for NY state
• PA: $40,560
• WA: $42,712.80 for up to 50 EEs, $49,831.60 for 50+

We will be reviewing those clients that have employees in these states to ensure compliance.

Flexible Spending Accounts

FSA accounts can be rolled over to 2021 for the full year. There are caveats to this rule. We are waiting for final details on this plan. Also, employees will be allowed to make a change in their elected deductions in mid-year. Again, the government is preparing the final details on this law.

Paycheck Protection Program

Companies can apply for an additional PPP loan in 2021, based on if they show a 25 percent decrease between any two quarters in 2020. Talk with your accountant to file. More detailed information is promised by the government in two more weeks.

New Tax in Connecticut

There is a new tax coming through to employees in Connecticut that they will see on their paychecks in 2021. We will monitor for those clients who have employees in CT.

 

Flex HR can be the back office for your company’s human resources. Contact us today if we can be of service. We also provide informational webinars that are customized based on your needs.

About Flex HR

Flex HR is an Administrative Services Organization (ASO) that provides leadership to deliver customized, scalable and cost-effective HR outsourcing solutions. Flex HR offers a highly collaborative approach to consulting and outsourcing by aligning core human resources competencies needed to achieve the value expected from your company’s most important assets: your people.

 

Flex HR specialists serve thousands of different organizations, in countless industries, with company sizes varying from a few to over 75,000 employees. They offer many levels of services including HR consulting, outsourcing (HRO), compliance, recruiting & talent acquisition, training & development, and onboarding administration.

Flex HR serves almost every industry in all 50 states, including Georgia, Florida, California, North Carolina, and Tennessee, as well as Puerto Rico, the Virgin Islands, Canada and Europe supporting U.S. subsidiaries of foreign owned companies.

To Learn More about Flex HR Contact Us.