The Affordable Care Act (ACA) requires health insurance issuers and self-insured plan sponsors to pay Patient-Centered Outcomes Research Institute fees (PCORI fees). The fees are reported and paid annually using IRS Form 720 , the Quarterly Federal Excise Tax Return. Form 720 and full payment of the PCORI fees are due by July 31 of each year, and generally covers plan years that end during the preceding calendar year. For plan years ending in 2023, the PCORI fees are due by July 31, 2024. Overview of the PCORI Fees The PCORI fees were scheduled to expire for plan years ending on or after Oct. 1, 2019. However, a federal spending bill enacted at the end of 2019 extended the PCORI fees for an additional 10 years. As a result, these fees will continue to apply for the 2020-2029 fiscal years. Calculating the PCORI Fee Payment In general, the PCORI fees are assessed, collected and enforced like taxes. The PCORI fee is imposed on an issuer of a “specified health insurance policy” and a plan sponsor of an “applicable self-insured health plan” based on the average number of lives covered under the plan. Final rules outline a number of alternatives for issuers and plan sponsors to determine the average number of covered lives. Using Part II, Number 133 of Form 720, issuers and plan sponsors report the average number of lives covered under the plan separately for specified health insurance policies and applicable self-insured health plans. That number is then multiplied by the applicable rate for that tax year ( $3.00 for plan years ending on or after Oct. 1, 2022, and before Oct. 1, 2023, or $3.22 for plan years ending on or after Oct. 1, 2023, and before Oct. 1, 2024). The fees for specified health insurance policies and applicable self-insured health plans are then combined to equal the total tax owed. Action Steps To assess their obligations, employers should: Determine which plans are subject to the PCORI fees; Assess plan funding status (insured versus self-insured) to determine whether the issuer or the employer is responsible for the fees; and For self-insured plans, select an approach for calculating average covered lives. The IRS provides helpful resources, including a chart on how the fees apply to specific types of health coverage or arrangements.

Keeping up with labor law changes is crucial for employers to ensure compliance and protect employee rights. Recently, both New York State and New York City have introduced significant updates to their labor law postings. These changes reflect new protections and requirements that all employers must adhere to. Here’s a breakdown of the latest updates. New York & New York City Labor Law Posting Changes New York State Change New York has released an updated Fair Employment / Discrimination required notice. The notice now includes citizenship or immigration status as a new protected category, prohibiting employers from discriminating on these grounds. Additionally, the update extends the statute of limitations for discrimination claims under the New York State Human Rights Law from one year to three years. New York City Change New York City has introduced the Workers' Bill of Rights required notice. This notice serves as a gateway to a comprehensive guide to rights in the workplace in New York City. Employers must both post and give each employee a copy of this notice. Additionally, the poster must be made available on any online platform used to communicate with employees. Staying informed about these changes is vital for maintaining compliance and fostering a fair workplace. The updated New York and New York City labor posters are now available, ensuring that your business meets the latest legal requirements. For further details and to access the new posters, contact Simco.