IRS, Department of Labor extend certain employee benefit deadlines due to COVID-19
The Internal Revenue Service (IRS) and U.S. Department of Labor (DOL) have released an update granting a few temporary benefit extensions due to COVID-19 for:
- Qualifying life events ― Employees will have 30 days from the end of the COVID breakout period (date not yet provided) to complete their enrollment rather than 31 days from the effective date of the event. Life events include marriage, divorce, birth, adoption, placement for adoption, loss or gain of other coverage, and transfer from full time to part time or part time to full time.•
- COBRA health insurance ― Participants will have 60 days from the end of the breakout period to elect COBRA health insurance rather than 60 days from the effective date of COBRA coverage and will have an additional 45 days from the date of election to make their initial payment.
- Health care flexible spending accounts (FSA):
- CARES Act (Coronavirus Aid, Relief and Economic Security) allows over-the-counter medications and menstrual products to be eligible for reimbursement without a prescription beginning Jan. 1, 2020.
- Employees can carry over up to $550 from 2020 into 2021.
- Deadline to submit 2019 eligible health care claims has been extended from March 31, 2020, to 60 days from the end of the COVID breakout period (date not yet provided).
- Dependent care flexible spending accounts – Employees may cancel their dependent care FSA contribution on a prospective basis if they are no longer utilizing day care.
This article will be updated in mySolutions as soon as the IRS or DOL provide an end date of the breakout period. For more information, visit mySolutions or call the HR Solution Center at 717-531-8440, open Monday through Friday from 7 a.m. to 5 p.m.
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