Workplace News this Week: 401k trends, FSA's, and vaccines (of course)

Here are the topics and trends grabbing attention ?? in the workplace this week. As an Employee Benefits Advisor, we get the inside scoop on what employers and employees are concerned, excited, and stressed about. What is the topic grabbing your attention this week?

1. Federal Contractors get an extra month to get vaccinated! The Safer Federal Workforce Task Force (“SFWTF”) updated its Guidance for Federal Contractors and Subcontractors this week. Instead of having to be “fully vaccinated” for COVID-19 by December 8, 2021, the SFWTF now says, “Covered contractor employees must be fully vaccinated no later than January 18, 2021.” (We think they meant to say 2022). We are seeing most companies stick to the original compliance deadline so they don’t have to worry about it in the new year. View FAQs here. Info source: Maynard Cooper Gale
2. KPMG is changing the way we think about a company’s 401k match. Paul Knopp, the CEO at KPMG, announced last month that they will no longer base their company match off of employee contributions. The new plan will not require an employee to contribute their own money but instead will base the match off of 6-8% of the employee’s eligible W-2 pay. Along with upgrading their 401k contributions, KPMG is doing a complete benefits overhaul. They are reducing employee health care premiums by 10% and implementing 12 to 22 weeks of paid leave for new parents.
3. The IRS increases the amount individuals can contribute to their 401k and FSA. Wooh! Better late than never! Over the past week, the IRS increased the contribution limit for 401k plans to $20,500, a $1,000 increase from 2021. For Flexible Spending Accounts (FSA), individuals can contribute up to $2,850 for 2022. Plans that include a carryover provision, can increase their carryover limit to $570 (prior was $550) for 2022. Commuter benefit limits also increased, going from $270 to $280. You should have received notices from your 401k and FSA partners. Make sure to update your limits in time for open enrollment! ??

To view trending topics in greater depth, make sure to check out my weekly LinkedIn Live, FriYay Workplace News, on Friday's at 9AM EST.?