Month: March 2020

The Coronavirus Aid, Relief, and Economic Security Act (CARES) was signed into law on March 27, 2020. It's a mammoth bill of over 880 pages, and contains many employee benefit-related items. This post, the second in the CARES Act series deals with the qualified retirement plan provisions in the Act.

The Coronavirus Aid, Relief, and Economic Security Act (CARES) Act has now been signed into law on March 27, 2020. It is a mammoth bill of over 880 pages, and contains many employee benefit related items. This post deals with two health and welfare items: over-the-counter drugs and telemedicine.

In an IRS News Release (IR 2020-57) issued on March 20, 2020, the IRS announced that they will shortly provide guidance that employers with fewer than 500 employees may retain payroll taxes withheld from employees’ paychecks for the tax credits for emergency paid leave.

We have seen many news stories of how the COVID-19 virus has impacted many employers, causing some to turn to significant reductions in their workforce via furloughs and layoffs.   COBRA law and regulations are quite clear.

But there is an alternative for some employers.

On March 11, 2020, the Internal Revenue Service advised that high-deductible health plans (HDHPs) can pay for COVID-19-related testing and treatment, without jeopardizing their status. This also means that an individual with an HDHP that covers these costs may continue to contribute to an HSA.