About PCORI fee reporting
The Affordable Care Act requires a minimal fee to be paid by companies based on the average number of participants covered by your company's PeopleKeep benefit for the prior year. As a plan sponsor, you need to report these fees annually on IRS Form 720. This fee, and your completed Form 720, are due by 7/31/2019.
Please note that the PCORI fee will no longer apply to benefit years ending on or after Oct. 1, 2019. The final filing for a calendar year benefit will be July 31, 2019, in reference to the 2018 benefit year. Any benefit year ending before October 1, 2019 will still be required to file the form in 2020.
How to complete Form 720
Download the form here: IRS Form 720
In the examples below, the benefit covered an average of 3 eligible employees for their 2018 benefit year.
Step 1. Complete company information header
- Quarter ending will be June 30, 2019
- Only check Final return if the company is 1) going out of business, or 2) will not be required to file a Form 720 in future quarters
Step 2. Complete Part II, line 133(d)*
- *If your PeopleKeep benefit ended before October 1, 2018, you’ll complete line 133(c) instead. Your rate for average covered life will be $2.39 rather than $2.45.
Step 3. Complete Part III lines 3 and 10, sign and date
Step 4. Complete Payment Voucher
Step 5. Send completed form, payment voucher and check to:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0009