The ACA imposes a fee on companies that have a QSEHRA to help fund the Patient-Centered Outcomes Research Institute (PCORI).
About the fee:
- It is required to be reported only once a year in July.
- It is reported on IRS Form 720.*
- For plans that ended December 2019, the PCORI fee is $2.54 per employee per year, and it is due July 31, 2020. **
*Although Form 720 is a quarterly return, for PCORI, Form 720 is filed annually only, by July 31. If you have another reason to file the Form 720 on a quarterly basis, you only need to report the PCORI fee on the second quarter form, due July 31st.
**Remember your plan documents are written with the plan ending on December 31st each year. If you had a QSEHRA with us in 2019, your plan ended on December 31, 2019, regardless of when it started. That means that your PCORI fee is due by July 31, 2020.
How was my total PCORI fee amount calculated?
The $2.54 per employee fee is annual, so if you had an employee that was only eligible for part of the year, or if your plan was only in place for part of the year, the amount owed is prorated. For example, if you had one employee on your HRA, and they were only eligible for 6 months of 2019, the total you will owe is $1.27. The total fee you owe will be based on the fee per employee, depending on how many months each was eligible.
Also, note that if you owe less than $1.00, you do not have to pay the fee, but you do still have to mail in your signed Form 720.
Does Take Command Health help me report and pay the PCORI fee?
Yes! We are here to help. We will send you all the information and instructions you need to file the Form 720 and pay the required fee to the IRS. We'll fill it out as much as possible and instruct you exactly on where & how to add information.
How do I file my Form 720 & pay my PCORI fee?
To file your Form 720, mail the completed Form 720, along with Form 720-V (Payment Voucher), and a check or money order for the total owed to the IRS:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0009
If you prefer, you can pay electronically through EFTPS. Electronic payments must be initiated before July 30th 8:00pm EST. Note that you'll still need to mail in your Form 720 even if you pay electronically.
For more detailed information, see the IRS Instructions for Form 720.