Blog Details

Employers of self-insured health plans are required to submit the PCORI (Patient-Centered Outcomes Research Institute) fee, among other things. This group includes several businesses that offer drug and alcohol testing services, especially those in the safety-sensitive and transportation industries. Knowing where and how to complete IRS Form 720 for PCORI fee is essential for compliance, regardless of whether you manage drug testing programs directly or for a third-party administrator. 

One clause that applies to firms who pay for their own employee health coverage is the PCORI fee. As a result, employers are required to pay the charge for pre-employment, random, and post-accident tests. These companies must pay the PCORI charge on their own since they are frequently the ones conducting the occupational wellness or healthcare programs. The IRS Form 720 is used for the filing, which takes place during the second quarter and is due on July 31 of each year. The form can be sent to the authorized providers by mail or electronically. 

Many of the Reasonable Suspicious Test and CDL drug test providers are part of the employee's health plan, which is fully funded by the employer. As a result, businesses that provide health reimbursement plans or similar programs and have self-insured coverage are most likely the ones who are required to submit the PCORI fee. The average number of covered lives under the plan must be accurately estimated and appropriately stated in the form. This charge supports comparative effectiveness research, which is crucial to American healthcare decision-making. 

Employers can choose to employ e-filing services for a quicker submission or mail Form 720 to the IRS for processing. In order to save time and money while meeting these criteria, it is advisable for drug testing service providers handling Follow Up Test and Physical Test (NC/RE) evaluations to save digital copies and e-files. Make sure your accounting or HR department incorporates PCORI tracking into the compliance checklist so they can fulfill their annual responsibilities. 

All organizations must follow their plan documents to determine PCORI applicability and complete the process of validating the related PCORI obligations, regardless of the size and kind of drug testing companies. It is preferable to visit the IRS website or even consult a tax expert because the fee amount depends on the policy year. Ensure accuracy to avoid penalties. The law applies to both traditional insurers and the service providers who oversee Random Tests and CDL exams. 

Drug testing companies can avoid fines and demonstrate complete compliance with the law by keeping an eye on all developments and paying the PCORI fee on time.