December 2020 Stay Current Newsletter

COVID-19 Reporting Requirements for California Employers

A new Emergency Temporary Standard (ETS) was adopted by the Cal/OSHA Standards Board and signed into immediate effect on November 30. This new ETS will apply to almost every employer in the state of California and supersedes certain previous COVID-19 requirements.  Missed our post? Read it here.

Vaccines in the Workplace: Can you Require Them?

The first vaccines were distributed in the U.S. on Monday, December 14, 2020. This is a major turning point in the global pandemic. As the rollout of vaccines expands, employers may wonder “Can I require my employees to be vaccinated?”  As of the date of this article, employers cannot require employees receive vaccinations (with certain exceptions based on industry). Although unconfirmed, there is speculation that there may be a new ruling soon, permitting employers to require employees to receive a vaccine. If an employer does require a vaccine, they will need to be prepared for employees to request exemptions for personal, medical, disability, religious, or other reasons.  However, employers can encourage employees to get a vaccine. This allows employees the opportunity to decline the vaccine without the employer needing to enter into the interactive process to determine if an accommodation is reasonable.  The Equal Employment Opportunity Commission (EEOC) released guidance about vaccines in the workplace on December 16, 2020. The new information can be found by clicking here and scrolling to section K.  There is no simple answer or approach to vaccines in the workplace. Your consulting team is available to assist you with navigating your role as an employer.

Harassment Prevention Training Deadline is 12/31

Employers with five or more employees must complete harassment prevention training for all employees by December 31, 2020. While employers were hopeful an additional extension would be granted, that is not the case. Ask a member of your consulting team for session requirements and methods to complete the training virtually.

Final Forms and Instructions for 2020 ACA Reporting Released

2020 ACA Reporting is Due in Early 2021 The IRS has released final 2020 forms and instructions for use in early 2021 to report under IRS Code Sections 6055 and 6056 for the 2020 calendar year.  2020 Form 1094-B and Form 1095-B (and related instructions) will be used by providers of minimum essential coverage (MEC), including self-insured plan sponsors that are not ALEs, to report under Section 6055. 2020 Form 1094-C and Form 1095-C (and related instructions) will be used by applicable large employers (ALEs) to report under Section 6056, as well as for combined Section 6055 and 6056 reporting by ALEs who sponsor self-insured plans.  The forms and instructions include a number of changes and clarifications related to 2020 reporting.  The deadline for furnishing statements to individuals under Sections 6055 and 6056 has been extended to March 2, 2021. Good faith relief from penalties for reporting incorrect or incomplete information has been extended to 2020 reporting. The IRS has extended relief from penalties for reporting entities that furnish individual statements under Section 6055 only upon request for 2020 calendar year reporting. The “Plan Start Month” box on Form 1095-C is now required for 2020 reporting. Certain additions were made to the 2020 Forms 1095-B and 1095-C related to individual coverage HRAs (ICHRAs). Form 1095-B includes a new code G to be used on line 8, Origin of the Health Coverage, to identify coverage under an ICHRA. In addition, Form 1095-C includes new codes in Code Series 1 for reporting offers of ICHRAs, as well as new lines for reporting required information.  Employers should become familiar with these forms and instructions for reporting for the 2020 calendar year. Individual statements must be furnished by March 2, 2021, and IRS returns must be filed by Feb. 28, 2021 (March 31, 2021, if filed electronically). This article has been reprinted with approval from HR360.

Expanded Pay Reporting Requirements Effective January 1

SB 973 will require employers with 100 or more employees to provide certain pay information to the state of California on an annual basis. The first report is due on March 31, 2021 for calendar year 2020. The Department of Fair Employment and Housing (DFEH) is expected to release a secure, online reporting portal in advance of the filing deadline. Many employers with 100 or more employees are familiar with the federally required EEO-1 report about representation of males versus females in ethnic groups in nine occupational classifications or job categories. In 2017 and 2018, employers had to begin including pay data information with this report, also known as EEO Component-2 data. Due to the pandemic, this reporting has been federally postponed with no known revival date.  In response to this, California has created their own pay reporting requirement. The report will include information including number of employees by race, ethnicity, and sex based on 10 job categories. These employees will be separated into pay bands as established by the US Bureau of Labor and Statistics Occupational Employment Statistics Survey. The report will also include the total hours worked by each employee in each pay band.  This will not be an easy or quick task. Employers who must report should start planning now. Until the online portal is released, updates and information can be found here.

Question of the Month: Do I Need Compliance Postings if my Employees are Remote?

Maybe. Employees that are working remote 100% of the time and do not set foot in an office location should have the compliance posters mailed to them in a hard copy. Hard copies are suggested to comply with the specific font and document size requirements. Employees that periodically visit a work location with postings do not need copies mailed.  Your consulting team is available to assist you with the best strategy to remain compliant. If you need to place your order for a 2021 poster, contact us here.

Holiday Office Closures

Our offices will be closed Thursday, December 24 through Friday, January 1, 2021 in observance of the Christmas and New Year holidays. We will respond to all emails and voicemails when normal business hours resume on Monday, January 4, 2021.

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