USA Employment Law 2021 Updates & Changes | Novative

USA Employment Legislation Update 2021

The new calendar year brings new employment law updates and changes. In 2021 many states enacted these changes; employee leave policies. Policies ended or extended because of the COVID-19 pandemic. Some states put in place steps to improve diversity in the workplace.

Here is a roundup of some changes.

Federal employment law changes in 2021

Here are three federal employment laws that may affect your company.

• Mandated Federal minimum wage remains at $7.25/hr. However, check State legislation for Minimum wage increases in states where you have employees.
• 2021 W-2 form changes for security. Employers now have the option to display the last four digits of the employee’s social security number. This is to try and reduce identity theft.
• Due to the COVID-19 Pandemic The Equal Employment Opportunity Commission (EEOC) was postponed. EEOC has announced that the data collections are now on schedule to open in 2021.

What States are raising the Minimum Wage in 2021?

25 states are raising their minimum wage in 2021. These states are Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Illinois, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, South Dakota, Vermont, Virginia and Washington.

In most of these states, the minimum wage will rise on January 1, 2021. However, in Connecticut, Florida, Nevada, Oregon and Virginia, the rise will occur later in the year. Minimum Wage Rates by State 2021.

Consolidated Appropriations Act, 2021

The Consolidated Appropriations Act signed on the 27th of December 2020. The legislation provides further relief for those hit economically by COVID-19.

Qualified Leave Tax Credits Extended

As of January 1, 2021, certain US employees will no longer be able to take advantage of expanded paid leave benefits. Which was placed by the Family First Coronavirus Response Act (FFCRA). A federal law enacted in response to the COVID-19 pandemic and expired December 31, 2020. The full FFCRA law was not extended into 2021. However, employers have the option to elect to continue allowing employees to take unused FFCRA paid sick and family leave. They receive the federal tax credit through 31st March 2021.

Employee Retention Credit Extended and Expanded

The Employee Retention Credit under the CARES Act encouraged businesses to keep employees on their payroll. The refundable tax credit was 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. The Consolidated Appropriations Act, 2021 extends and expands the availability of the CARES Act employee retention tax credit through June 30, 2021. However, certain provisions of the Act apply only after December 31, 2020.

Repayment Period for Deferred Employee Social Security Tax Extended

Employers could defer Social Security withholding for employees share of social security tax on wages paid September 1st 2020 to December 31st 2020 with language to be paid back by April 20th 2021. However, this has now been extended to December 31st, 2021.