Target: COVID Vaccine Updates
On Monday the US Food and Drug Administration (FDA) approved Pfizer COVID vaccine to be given to kids ages 12 to 15. The COVID-19 Vaccine Landscape continues to evolve, as does the guidance being delivered by the CDC for vaccinated individuals. This guidance, along with key employment practices and mental health considerations, plays an integral role in employers’ evolving return to the workplace strategies. In our latest Brown & Brown video update, found on our COVID website, members of our team provide straightforward insight about the current state of vaccination efforts and important considerations for employers as they work to return their workforce to the workplace.
Look for updated versions of the following resources also posted on our COVID website:
Target: IRS Clarity on Taxation Issues for Dependent Care FSA
On May 10, 2021, the IRS released Notice 2021-26, which offers clarifying guidance on certain tax issues related to employees’ participation in dependent care assistance programs (DCAPs) during 2021 and 2022. Notice 2021-26 clarifies that if carried-over DCAP funds, or funds subject to an extended grace period, would have been excluded from a DCAP participant’s income if used during the prior tax year (i.e., during the taxable year ending in 2020 or 2021), they remain excludable from gross income and are not wages of the employee for the tax years ending in 2021 and 2022. Additionally, the notice clarifies that carried-over DCAP funds, or funds subject to an extended grace period, will not be subject to IRS Code 129’s dependent care tax exclusion limits for the taxable years ending in 2021 and 2022. This is irrespective of the American Rescue Plan Act of 2021’s increased exclusion limit for DCAP funds from $5,000 to $10,500 (half that amount in the case of a married individual filing separately) for 2021.
Brown & Brown has targeted three valuable resources to help you and your employees through the COVID-19 pandemic:
Please don’t hesitate to reach out to your Brown & Brown team with any questions, thank you.