The Affordable Care Act imposes a fee (tax) on companies/organizations sponsoring specified group health insurance policies and plan sponsors of applicable self-insured health plans to help fund the Patient-Centered Outcomes Research Institute (PCORI). It is required that the fee is reported annually on IRS Form 720 and paid by the due date of July 31st.
Companies/organizations will enter the number of covered employees and dependents and the applicable tax ($1 for plan years ending before October 1, 2013; $2 for plan years ending on or after October 1, 2013) in Part II of Form 720 (line 133) to calculate the amount owed.
Convenient quick links to both IRS Form 720 and IRS Instructions for Form 720 are provided below. While the PCORI tax is not handled through payroll, we strive to keep our clients current on relevant business topics. Please contact your accountant for specific questions.