The PCORI Fee must be paid by issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans every year by July 31st until 2029.
How is the PCORI Fee Calculated?
There are 3 methods to calculate the PCORI Fee,
· The Actual Count Method
· The Snapshot Method
· The Form 5500 Method
In this blog, we will explore the snapshot method in detail, as it is one of the best methods for calculating the PCORI Fee
SNAPSHOT Method:
Add the total number of employees covered on a specific date (or more dates if an equal number of dates is used in each quarter) of the plan year and divide by the number of dates on which a count was made and multiply with Current PCORI fee per life
1. Employee covered on a specific date – Count each individual who is eligible to pay the fee on the selected date.
2. Each quarter - A three-month period on a calendar
3. Current PCORI fee per life – The PCORI Fee for a single life in the current year is $3.22 for a plan year ending between October 1, 2023, and December 31, 2023.
Let us simplify the Formula for easy understanding,
Total Fee = (Sum of participants from designated dates in each quarter) / 4) * Current PCORI fee per life
Example = ((10+20+15+25)/4) * $3.22
= (70/4) * $3.22
= 17.5 * $3.22
= $56.35
The process of calculating the PCORI Fee manually can be tedious and complex, especially for bulk filings. Simplify this task by choosing the online filing method with our IRS-approved portal, Simple720.com.
Read our blog on PCORI Fee Reporting to understand the nuances.
How to File PCORI with Simple720?
Simple720 is an IRS-approved online portal for filing the PCORI Fee. It simplifies the process by automatically performing the necessary calculations and displaying the results on your dashboard, saving you a significant amount of time.
To file the PCORI Fee with Simple720, follow our step-by-step guide:
https://www.simple720.com/blog/how-to-file-pcori-online.
WRAP:
After understanding the snapshot method for PCORI Fee calculation, you can opt for the online filing method to save time and simplify the process. Use our IRS-approved online portal, Simple720.com, for efficient PCORI Fee filing.