December Employee Benefits Tips and Guidance from NYSTIA Member Brown & Brown

The IRS released notice regarding the increase in Patient-Centered Outcomes Research Institute (PCORI) Fee. The new fee is $3.00 per covered member for all plans with plan years that end on or after October 1, 2022, and before October 1, 2023.

This is an increase to the 2021-2022 PCORI Fee of $2.79 per covered member that applied to plan years that ended on or after October 1, 2021, and before October 1, 2022. As a reminder, despite fully insured and self-funded health plans being subject to this fee, under IRS rules, self-funded employers/plan sponsors must not only report the number of covered members they have enrolled in the self-funded health plan on Form 720 but also pay the applicable PCORI Fee directly to the IRS by July 31 of the calendar year following the end of the applicable plan year. Read more.

Employers subject to Affordable Care Act (ACA) reporting under Internal Revenue Code Sections 6055 or 6056 should prepare to comply with reporting deadlines in early 2023. Employers with 50 or more full-time employees (including full-time equivalent employees) during the preceding calendar year are subject to ACA reporting. For the 2022 calendar year, covered employers must:

• Furnish statements to individuals by March 2, 2023; and

• File paper returns with the IRS by Feb. 28, 2023 (or March 31, 2023, if filing electronically)

  Penalties may apply if employers are subject to ACA reporting and fail to file returns and furnish statements by the applicable deadlines. Read more.