It’s that time of year again, Open Enrollment! This time of year, BASE® offers our customers the opportunity to look at their small business and see what they could be doing to save more money. Is your business utilizing every possible tax saving option? Don’t worry, BASE® is here to help! Our products offer various tax saving options. Plus, once a year we give our customers the chance to check their plan, make changes and look forward to the new year.
Every year from October through December, a BASE® representative will walk you through your specific plan and makes changes if needed. New address? New business structure? If changes need to be made, BASE® will be able to update your plan for the following year.
One major change that is important to communicate during Open Enrollment is whether there has been a change from group to individual or individual to group health insurance. This change can greatly affect the plan design and available benefits through BASE® products. BASE® offers many products to help you or your clients save tax dollars. Along with saving money, we make sure your plan stays in compliance.
With these compliance checks, your business does not have to worry about Affordable Care Act penalties. BASE® can answer all of your ACA questions and how it relates to your plan, so you have peace of mind all year long!
Open Enrollment may be only once a year, but BASE® is always here to help!
The PCORI fee deadline is on July 31, 2016 and relates to Health Reimbursement Arrangements (HRAs), per the Affordable Care Act. If you or your clients have been utilizing an HRA, be aware of the impending deadline.
The fee is required to be reported annually on Form 720, Quarterly Federal Excise Tax Return, for the second quarter of the calendar year. The fee for a plan year ending on or after October 1, 2015, but before October 1, 2016, is $2.17 multiplied by the number of employees covered under the plan for that plan year. However, plan years ending before October 1, 2015 should figure the fee by multiplying the number of employees covered under the plan for that plan year by $2.08.
This fee has been in effect since 2012 and will continue to be adjusted annually based on inflation, as determined by the Secretary of Health and Human Services. Currently, the PCORI fee will no longer apply to policy or plan years ending after September 30, 2019. Employers should review Summary Plan Descriptions to make certain the correct dollar amount is being used on the form for 2016.
Not all HRA plan sponsors are required to pay the fee per IRS and Department of Labor guidance issued.
• Section 105 HRA (with only 1 employee)
Business owners with one employee that have an HRA in place do not have to pay this fee.
• Integrated HRA (with 2 or more employees)
Business owners with two or more employees that have an HRA in place are required to pay the fee by July 31, 2016.
• Excepted Benefits HRA
Business owners with an Excepted Benefits HRA in place are not subject to the fee since it provides only excepted benefits.
For complete instructions on paying and submitting the PCORI fee, please visit http://www.irs.gov/pub/irs-pdf/i720.pdf. If you have any questions regarding this information or tax advantaged plans call BASE® at 1-888-386-9680. Learn more about how you and your clients can save money with tax saving benefits by visiting www.BASEonline.com or contacting a BASE® representative.