Sponsors of self-insured health plans will pay their last PCORI fee by July 31, 2019 (for calendar-year plans) or by July 31, 2020 (for certain non-calendar-year plans).
In our prior BLOG posting IRS Increases PCORI Fee , we announced the IRS increase to the PCORI fee from $2.39 to $2.45 per average Covered life.
Plan sponsors must report and pay the fee for a plan year using IRS Form 720 by indicating on the Payment Voucher (720-V) at the end of the form, that the tax period for the fee is the second quarter of the year.
On page 2 of Form 720, under Part II, the employer needs to designate the average number of covered lives under its applicable self-insured plan. The number of covered lives will be multiplied by $2.45 for plan years ending on or after October 1, 2018, to determine the total fee owed to the IRS.
Have questions on which method is calculate the average number of lives is best to use for your company or need further assistance? Contact AJM Associates at firstname.lastname@example.org
Information contained in this BLOG is not intended to render tax or legal advice. Employers should consult with qualified legal and/or tax counsel for guidance with respect to matters of law, tax and related regulations. AJM Associates, Inc. provides comprehensive benefits advice and administrative services with respect to all forms of employee benefits, individual insurance, Medicare, and ancillary coverage services. For additional information about our services, please contact us at www.ajmassoc.com