It did not define reasonable accommodation. The guidance indicates “reasonable accommodations” should be allowed for individuals with an election window/payment extension deadline that may have expired. DOL Releases Guidance on Extended COBRA Deadlines - On February 26, 2021, the Department of Labor (DOL) released guidance that extended COBRA deadlines due to disaster relief efforts. The subsidy is available to AEIs from April 1, 2021, through September 30, 2021. The American Rescue Plan Act (ARPA) includes a 100% subsidy of COBRA coverage for “assistance eligible individuals” (AEIs). This impacts employees with FSA, HRA and HIA accounts. In summary, the guidance indicates the end of the runout period will be extended by one year. DOL Releases Guidance on Financial Account Runout Extensions - On February 26, 2021, the Department of Labor (DOL) released guidance on the duration of the spending account changes provided in earlier disaster relief efforts. Please note that these limits apply to the 2021 tax year, and that non-calendar year plan participants should take this into consideration when making annual elections. The DCAP maximum amounts increased from $5,000 to $10,500 for married parents filing taxes jointly or for single parents, and from $2,500 to $5,250 for married parents filing separately per calendar year. This law increases the maximum amount that may be excluded from an employee’s gross income in 2021 under a dependent care assistance program (DCAP). American Rescue Plan Act of 2021 (ARPA) Increases DCAP Maximum - On March 11, 2021, the American Rescue Plan Act of 2021 (ARPA) was signed into law. Since then, Congress, the IRS and the DOL have made several regulatory changes and announcements to address the continued impact of the COVID-19 virus. This act included important provisions for health spending accounts, including expanding the list of eligible expenses that qualify for reimbursement to include over-the-counter medications. Further white paper detailing COVID-related spending account changes available for download - Passed in March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was the first piece of federal legislation addressing the impact of the COVID-19 pandemic.
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