Small Business News for June 2021
New Retirement Plan Requirements for Employers
For employers in New York, there is a new requirement coming to your payroll. New York City has enacted a local law to establish a retirement savings program for certain private-sector employees. Employers who do not offer a retirement plan and employ five or more people must now auto-enroll employees in payroll deduction for individual retirement account programs (IRA). The program’s specifics, including the start date, process for employees, and outreach to employers, will be overseen by a retirement savings board appointed by the Mayor. New York businesses will need to follow the board’s progress closely for updates.
Court Upholds Retaliation Claim, Damages of $500,000
In March 2013, the plaintiff, then working for Abbott Laboratories, took a medical leave of absence. During this leave, she received a letter threatening to terminate her employment if she did not return to work by a specific date. The jury found that this threat met the definition of retaliation. The 1st Circuit Court in March of this year has upheld that decision. The plaintiff was engaging in a protected activity while the company was threatening to terminate her.
IRS Clarifies Tax Guidelines for Dependent Care FSAs
The IRS has addressed questions about the taxability of Dependent Care Flexible Spending Accounts until 2022 in regards to COVID-19 confusion. There will be no tax amounts on OCVID-19 relief provisions allowed to carry over from year to year. If these funds would have been excluded from income if used during a taxable year, these benefits are excluded from gross income and are not taxable wages for 2021 or 2022.