From record-keeping, new laws, and filing deadlines for state, federal, and local compliance, the HR responsibilities of small businesses continue to grow. Here are some of the most important HR-related tasks to address in Q2 2021.
Download a PDF of the Q2 2021 HR Checklist here.
Review New American Rescue Plan Act of 2021 Tax Credits. While the mandate to provide FFCRA leave for Covid ended Dec. 2020, employers can voluntarily provide leave and still receive tax credits through the new American Rescue Plan of 2021. Enacted March 11, 2021, the American Rescue Plan Act of 2021 amended and extended the tax credits (and the availability of advance payments of the tax credits) for paid sick and family leave for wages paid with respect to the period beginning April 1, 2021 and ending on Sept. 30, 2021.
Review Record-keeping Requirements for Small Businesses. Depending on the action, the IRS recommends that small business owners should keep records for three years as a general rule and employment tax documents for four years.
Schedule Required Compliance Training. Check all required federal, state, and industry workplace training requirements that apply to your business, as well as workplace training mandated in your state. If Covid-related training is not required in your state, employers should consider workplace training consistent with OSHA and CDC guidelines.
Review Updated DOL Rule Clarifying Pay Rate Calculations for Piece-Rate Workers. Employers may calculate the regular pay rate for employees paid on a piece-rate basis — for example, those paid per unit of production rather than a period — by dividing the employee's earnings by the number of hours worked in a workweek, including both productive and nonproductive hours.
Review new EEOC Compliance Updates for Religious Discrimination. The updated EEOC guidance describes how Title VII of the Civil Rights Act of 1964 (Title VII) protects individuals from religious discrimination in the workplace and sets forth the legal protections available to religious employers.
Review New OSHA NEP Program Requirements. The U.S. Occupational Safety and Health Administration (OSHA) launched a new program to expand inspection and enforcement efforts for businesses with employees at high risk for contracting Covid-19. The new National Emphasis Program (NEP) prioritizes enforcement of retaliation standards, focusing on employers retaliating against workers for complaints about unsafe or unhealthy conditions.
All employers should review and update their workplace Covid-19 safety documents, programs and make sure procedures are consistent with the latest OSHA and CDC guidelines. This includes, but is not limited to, standards related to hazard assessments, respiratory protection, safety signage, PPE, access and exposure to medical records, and injury and illness record-keeping and reporting.
Medicare Part D Disclosure. Employers providing prescription drug coverage to Medicare-eligible individuals must also disclose to the Centers for Medicare and Medicaid Services (CMS) whether the coverage is creditable or non-creditable. This annual disclosure must be made no more than 60 days after the beginning of each plan year.
Review Requirements on New COBRA Premium Subsidy. Under the new American Rescue Plan Act of 2021, the federal government will pay 100 percent of COBRA insurance premiums for employees who lost their jobs, and their covered relatives, through Sept. 2021. The subsidy applies to involuntary reductions of hours and involuntary terminations of employment. Apart from health FSAs, the subsidy applies to all group health plans. COBRA subsidies apply from April 1, 2021, through Sept. 30, 2021.
Employers must give eligible employees notice of their right to a new election and must also meet certain obligations. Eligible individuals must be allowed at least 60 days after receiving the new election notice to make that election. Employers may be subject to penalties for failing to provide appropriate notice of the subsidy or the right to a new election. Check the Dept. of Labor’s guidance on how to comply with the new federal COBRA premium subsidy law.
PLEASE NOTE: This information is for general reference purposes only. As we continue to work during an active pandemic, laws, regulations, and filing deadlines are likely to change. Please check with the appropriate organizations or government agencies for the latest information and consult your employment attorney and/or benefits advisor regarding your responsibilities. In addition, your company may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated April 28, 2021)
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About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 20 years. Propel partners with small to midsized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs.