How to Pay the PCORI Fee Online: A Step by Step Approach
Regulatory requirements within the healthcare system can be annoying especially when one is required to familiarise with certain costs such as the PCORI fee. This fee forms a critical part of funding research that seeks to enhance the quality of healthcare imposed on patients which qualitative research cannot provide. For the organisations that sell health insurance or health plans, timely payment of the PCORI fee is crucial to protect themselves from penalties. This article discusses what the PCORI fee is, who are the obligated and in addition the step by step process on how to pay the PCORI fee online.
What is PCORI Fee
The Affordable care act contains the PCORI fee which is meant to support the establishment of the patient centred outcomes research institute. The institute is engaged in funding research which averts many poor resolutions by providing evidence to patients, clinicians, and policymakers for efficient use of the most effective treatments and interventions. The fee is imposed on employers and insurers sponsoring self-insured health plans and insurers offering fully insured health plans.
The PCORI fee is assessable depending on the average number of covered lives under the plan structure and is usually paid once per year. The effective amounts which are being charged may differ but over the years the amounts have mostly gone up due to inflation increases.
Who Needs to Pay the PCORI Fee?
In this case, employers as well as insurers directly managing the self-insured medical benefit schemes are responsible for paying the PCORI fee. This includes;
- Self-Insured Employers: Organisations that bear the cost of providing health benefits to their employees directly self-insure instead of purchasing health insurance from a third party.
- Health Insurance Providers: Those selling fully insured health plans are also obligated to pay the fee.
- Certain Organisations: Along with other companies that provide health insurance these health care non profits and the government also have to pay the amount.
It should however be remembered that the charge will only be levied on plans that provide for health benefits and the following plans for example Medicare and Medicaid do not attract this tax.
Important Deadlines to Make PCORI Fee Payments
Before moving on to discuss how payments can be made, it is important to highlight the certain deadlines attached here with the PCORI fee.
Due Date: The PCORI fee is likely to fall due before July 31 of the year that follows the close of the plan period. For instance, in this case for plan year 2023, the fee would be incurred due on July 31, 2024.
Filing Requirements The fee is included in IRS form 720 which has to be attached with the payment made to the IRS.
PCORI Fee Payment Online or Over the Phone
It is very easy to pay PCORI fees over the internet and this is more efficient because you will save energy and assure that your payment is processed in a short time. Here is how you can do just that step by step.
Step 1: Gather Necessary Information
Acknowledging how each one of these advanced strategies streams enhances your organisation’s performance internally and externally, let us go through some questions; what information do you start with? pay attention. Gather all of the necessary information including:
- Employer Identification Number (EIN): This number solely issued for tax makes you identify your business.
- Number of Covered Lives: Calculate the average number of lives covered under your health plan for the applicable year.
- Total Fee Amount: According to the number of covered lives which you have classified into single persons, family type, or group type, the total PCORI fee will be computed.
Step 2: Access the IRS Online Payment System
Go to the IRS website and find the Electronic Federal Tax Payment System (EFTPS).
In case you do not have an account with them, you will have to create a new one. This involves your EIN plus bank details. Make sure to sort the registration part beforehand as it could take several days to complete.
Step 3: Log in to Your Account
Having created your EFTPS account, enter your login details using the tab provided. Be sure to have all details ready such as the EIN and the total figure you wish to pay.
Step 4: Make Your Payment
- When in your EFTPS account, click on the link which says make a payment.
- Indicate what tax form you want to file. In this case, it would be Form 720 which is applicable in the PCORI fee.
- Key in the payment amount in accordance to the calculated PCORI fee and number of covered lives.
Choose the date you want the wage withholding payment to be. In the due date, it has to fall on or within the due date in order to avoid being charged a penalty.
Step 5: Review and Confirm
Before processing your payment, kindly ensure that all the information provided is correct, including: – The payment amount – Payment Date – Your EIN Normal Forms and Other Identifying Information Once you are certain that the provided information is right, please proceed to make the payment.
Step 6: Record Keeping
The confirmation of the payment should be printed or saved after making the payment; ensure not to skip that. This document is essential since it is a payment confirmation document which should be filed with other documents confirming the existence of health plans and the PCORI fee.
Common Mistakes to Avoid
The website has ensured that members do not face problems when making the payment however, there are some ways in which other mistakes may arise which lead to problems or delays in payment. Here are some mistakes to avoid: – Incorrect EIN. EF. The Employer Identification number provided should be for the Company making the payment to avoid issues with the payment. An incorrect EIN will lead to payment issues –Underestimating Covered Lives. Avoid this error by understanding how many lives are regularly covered to avoid underpayment which comes with legal penalties. – Missing Deadlines. Why wait until the last minute when you should concentrate and focus on paying for the PCORI fee. Due dates are important and these probably will help with setting deadlines as reminders. – Not Keeping Records. Try to retain the payment confirmation and the calculation documents for compliance and other reference purposes.
Paying the PCORI fee online is an important consideration for employers and insurers that provide health benefits to their employees. By familiarising yourself with the required standards and undertaking an easy payment system, you can comply with the Affordable Care Act and make a positive impact in the healthcare industry. Do not forget to collect all relevant details, log in to the IRS online payment laptop, and document your payments appropriately. Being structured and perturbed, the PCORI fee can be dealt with sufficiently thus allowing one to centre more on their business activities. If you have any further questions regarding the PCORI fee or your payments, you may want to seek advice from a tax specialist who is familiar with your personal circumstances.