On Thursday, March 11, 2021, the President signed the American Rescue Plan Act (the ‘Act’) which includes continuation coverage premium assistance for certain individuals and their families receiving COBRA due to an involuntary termination of employment or a reduction of hours.
The Act also includes a temporary change to Dependent Care Flexible Spending Accounts (DCFSAs).
Asure is currently reviewing the guidance to determine the impacts to both our clients and members. Based on this review, Asure will determine next steps, so our clients and members have a solid plan of action. You can expect additional communications over the coming weeks.
We have been advised that the DOL is supposed to issue the model notices by May 10, 2021.
Asure will send the new required notices once available and provide the employer with the information needed to assist them with claiming the payroll tax credit when the time comes.