Compliance Reminder | PCORI Fee Notice
This is a reminder that the Patient-Centered Outcomes Research Institute (PCORI) fee imposed by the Patient Protection and Affordable Care Act (PPACA) on your health plan is due by 07/31/21. The fee is due by July 31st of the year following the end of the plan year. The following chart will help you determine what your applicable rate will be:
The fee is due at the same time as the Form 720 is filed. The form and instructions can be found at: https://www.irs.gov/forms-pubs/form-720-quarterly-federal-excise-tax-return
PCORI Fee FAQs
The following are some FAQs that may help you in preparing your filing:
Q1: During the Plan Year that ENDED in 2020, our Plan was fully-insured. Who is responsible for the PCORI fee?
A1: If the Plan was fully-insured during the reportable period, the insurer is responsible for the fee for that Plan year.
Q2: What Plans are subject to the PCORI Fee?
A2: The IRS has a chart of plans subject to the PCORI Fee. This can be found at: https://www.irs.gov/newsroom/application-of-the-patient-centered-outcomes-research-trust-fund-fee-to-common-types-of-health-coverage-or-arrangements
Q3: How do I file?
A3: The filing is done on an IRS Form 720. This is the form that is used for filing quarterly excise tax. The form and instructions can be found at: https://www.irs.gov/forms-pubs/form-720-quarterly-federal-excise-tax-return . If you do not normally file a Form 720 and the PCORI fee is the only fee you need to pay, then you do not have to make the other quarterly filings; just this one due by 7/31/21. You can electronically file Form 720 through any electronic return originator (ERO), transmitter, and/or intermediate service provider (ISP) participating in the IRS e-file program for excise taxes. For more information on e-file, visit the IRS website at www.irs.gov/efile.
Federal tax deposits must be made by electronic funds transfer. You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. EFTPS is a free service provided by the Department of Treasury. To get more information about EFTPS or to enroll in EFTPS, visit www.eftps.gov or call 1-800-555-4477. Also see Publication 966, Electronic Federal Tax Payment System, A Guide to Getting Started.
Q4: I file a Form 720 but have not seen the PCORI fee listed. Where do I find it?
A4: The PCORI fee was added to Part II.
Q5: How do I find my average number of lives?
A5: You can check your monthly billing statements, or internal census/payroll information. Or, if you need assistance in finding your number of lives to report contact your Account Executive, Benefit Strategist or go to Compliance@brinsonbenefits.com for assistance.
Q6: How much do I pay?
A6: Once you have determined the average number of member lives (participants and dependents) for the reportable timeframe, you multiple that number by the applicable amount. Please refer to chart above for your appropriate timeframe and amount.
Q7: How is the PCORI fee calculated when a plan changes its plan year?
A7: The PCORI fee applies to a plan year, including a short plan year. If a plan year is less than 12 months, the full dollar amount applies for the average number of lives covered during the short plan year.
Q8: Where can I find more information on the PCORI Fee?
A8: The IRS has a website devoted to the PCORI Fee along with FAQs. It can be found at: https://www.irs.gov/affordable-care-act/patient-centered-outcomes-research-trust-fund-fee-questions-and-answers
