Employers who offer health insurance plans or health reimbursement arrangements (HRAs) to their workers have a new federal tax to pay, and the deadline is coming up fast.
Health care reform legislation levies a tax of $1 per insured person covered by health insurance. The first due date arrives shortly, on July 31. The tax applies to health insurance plans in force from Sept. 30, 2012, through Sept. 30, 2019.The main exceptions are stand-alone dental and vision plans.
The tax must be reported on IRS Form 720, which includes instructions about how to file.
The money collected will pay costs of a newly created research group, called the Patient-Centered Outcomes Research Institute (abbreviated PCORI). It assesses the quality and effectiveness of medical treatments.
The money collected will pay costs of a newly created research group, called the Patient-Centered Outcomes Research Institute (abbreviated PCORI). It assesses the quality and effectiveness of medical treatments.
In case you’re wondering, IRS did rule on May 31 that the new fee qualifies as a deductible business expense. Talk your tax advisor or check out the instructions on Form 720 if you have further questions.