March 31, 2020

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Podcast Episode 70: FFCRA/COVID-19 FAQs, and a Few Thoughts on Unemployment Eligibility and Business Interruption Insurance

In this episode, Suzanne Spradley and Chase Cannon discuss recent questions popping up from employers regarding the FFCRA, COVID-19 and furloughed situations. Suzanne outlines the issues to consider in determining if FFCRA applies, including factors in employee counts to determine if an employer is above or below the 500-employee threshold and whether the 50-employee small exception is automatic. Suzanne and Chase discuss furloughs, and whether FFCRA applies to furlough employees. The two then discuss unemployment insurance, and whether furloughed or laid off employees might qualify for unemployment benefits (and how the newly enacted CARES Act expands unemployment benefits). The two close with a discussion on the P&C side — business interruption insurance, and how state and federal legislation might impact how business interruption insurance works in the COVID-19 environment.

Every other week, NFP's legal experts make the subject of compliance personal for a wide audience. By breaking down the daunting details of emerging policies and bridging the gap between legislation and what it means for the listener, Chase Cannon and Suzanne Spradley make compliance issues relatable and relevant. Visit our Soundcloud page every two weeks for the most up-to-date episode.

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FAQs on Benefits Compliance and COVID-19 Available

The Benefits Compliance team has published a set of FAQs that address a lot of the benefits compliance issues surrounding COVID-19. Information presented in the FAQs is subject to change pending additional guidance from the DOL, IRS or other regulatory agencies. Please contact your advisor for a copy.

403(b) Restatement Deadline Extended

Due to the coronavirus pandemic, the IRS is extending the last day of the initial remedial amendment period for Section 403(b) plans from March 31, 2020, to June 30, 2020. This means that plan sponsors now have until June 30, 2020, to update their pre-approved and individually designed 403(b) plan documents. As background, 403(b) plans were required by law to establish written plan documents by January 1, 2009. However, the IRS didn’t establish the required plan language and terms until 2017. In IRS Revenue Procedure 2017-18, the IRS gave plan sponsors until March 31, 2020 to restate their plan to include the required plan provisions. Employers sponsoring 403(b) plans should work with their adviser to have their plan document restated if they have not already done so.

IRS Extension »