Savoy Guide | IRS Releases 2021 Version of Publication 15-B, Employer's Tax Guide to Fringe Benefits, and Notice 2021-15

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Published: 02.23.2021

The 2021 version of Publication 15-B and IRS Notice 2021-15 reflects changes to a variety of fringe benefit rules, many of which provide COVID-19-related relief. The information aims to clarify the application of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, recently enacted within the Division EE of the Consolidated Appropriations Act, 2021. The information has already been enacted; this Notice simply provides supporting guidance. Here are some highlights:

• FSA Relief. The publication reflects relief for health and dependent care FSAs that allows employers increased flexibility for election changes, carryovers, and grace periods (among other things) in 2020 and 2021.
• High-Deductible Health Plans Relief. Telehealth and other remote care services are listed as permissible coverage for HDHP purposes (i.e., coverage that will not disqualify an individual from HSA eligibility) for plan years beginning on or before December 31, 2021.

The 2021 version of Publication 15-B also provides the 2021 dollar amounts for various benefit-related limits and definitions, including the monthly limits under qualified transportation plans; the limit on health FSA salary reductions; limits related to QSEHRAs (for the transportation, health FSA, and QSEHRA amounts); HSA-related limits and thresholds; and the standard mileage rate for valuing the personal use of employer-provided vehicles.

For details, visit:

• Employer’s Tax Guide to Fringe Benefits, 2021 Publication 15-B (irs.gov)
• IRS Notice 2021-15, Additional Relief for Coronavirus Disease (COVID-19) Under 125 Cafeteria Plans N-2021-15 (irs.gov)

           Content supplied by Thomson Reuters/EBIA.

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