CAA 2021 Resources

Consolidated Appropriations Act, 2021 Resources for Employee Benefits

The Consolidated Appropriations Act, 2021 (the “CAA”) became law on December 27, 2020. The CAA was widely reported as a COVID-19 relief bill, in part because of its inclusion of $600 direct payments to Americans with an adjusted gross income less than $75,000. However, the Act also includes various employee benefits-related provisions, not all of which were related to the COVID-19 emergency.

General Resources

Legislative Text 

Joint Tax Committee Estimated Budget Effects

Retirement Plan Provisions

IPB Summary of CAA Retirement Plan Provisions

IRS Q&As on CAA Partial Termination Relief 

Health and Welfare Plan Provisions

IPB Summary of CAA Health and Welfare Plan Provisions 

IRS Notice 2021-15 re FSA Flexibility

Tri-Agency (IRS/DOL/HHS) Q&As on Mental Health Parity 

Fringe Benefits and Other Employee Benefits Provisions

IPB Summary of Student Loan Repayment Benefit Extension - The CAA extends by five years the CARES Act provision that allows employers to provide employees with a tax-free benefit for student loan reimbursements as part of eligible educational expenses up to $5,250 per employee per year. That tax-free benefit is now available through January 1, 2026.

IPB Summary of Paid Family & Medical Leave Tax Credit Extension - The CAA extends through 2025 the employer tax credit for wages paid to employees on paid family and medical leave, originally available for just 2018 and 2019 as part of the 2017 Tax Cuts & Jobs Act.