Patient-Centered Outcomes Research Institute Fees due July 31, 2014
The tax is based on the average number of lives covered under the plan for that plan year. Generally, for self-insured plans the lives covered will include employees and their dependents. For HRA’s and HSA’s, the employer will only count participants covered by the plan, and not dependents. For plan years beginning before July 11, 2012, plan sponsors may determine the average number of covered lives using any reasonable method. All others must use either the Actual Count Method (determine number of covered lives each day and divide by the number of days in the year), the snapshot method (same as Actual Count Method, but only calculated using end of quarter numbers) or the Form 5500 method (select a date in the plan year that is representative of the entire year).
The tax is paid using Form 720 for the second quarter of a year. Generally, the tax will be paid for plan years ending during the preceding calendar year. The due date for filing and paying the tax is July 31 of the subsequent calendar year. For plan years ending before October 1, 2013, the tax rate is $1.00 times the average number of lives covered. For plan years ending after September 30, 2013, and before December 31, 2013, the tax rate is $2.00 times the number of lives covered. The IRS will announce the amount of the tax for subsequent years.
The tax is scheduled to expire for plan years ending on or after October 1, 2019.