July 9, 2019

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Podcast Episode 56: DOL and IRS Enforcement Involving Employee Benefit Plans

In this episode, Suzanne Spradley and Lauren Fischer discuss criminal enforcement actions by the DOL and IRS involving employee benefit plans. Specifically, the two discuss the latest development in the action involving The Total Financial Group, Inc., which promoted the Classic 105 program. Suzanne and Lauren then discuss other enforcement actions involving an HRA administrator, an internal employee benefit administrator and a program that sought to carve-out high claimants from a self-insured plan.

Every other week, NFP's legal experts make the subject of compliance personal for a wide audience. By breaking down the daunting details of emerging policies and bridging the gap between legislation and what it means for the listener, Chase Cannon and Suzanne Spradley make compliance issues relatable and relevant. Visit our Soundcloud page every two weeks for the most up-to-date episode.

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July Get Wise Wednesdays Webinar – Register Now

NFP's Benefits Compliance team is hosting its next webinar on July 17, 2019, from 2:00 to 3:00 p.m. CT (3:00 to 4:00 p.m. ET). The topic is "Is Your Wellness Program Running Well?"

Can’t make a live webinar? A recording of each session will be posted to the NFP Client Learning Portal within 48 hours of the live webinar. Those listening to a recorded webinar aren’t eligible for recertification credit.

The moderator will answer as many questions as possible during the webinar. If your question isn't answered by the end of the webinar, reach out to your advisor for assistance.

Is Your Wellness Program Running Well
July 17, 2019
Register Now »

Reminder: Form 5500 Filing for Calendar Year Plans Due July 31

Applicable plan sponsors must file Form 5500-series returns on the last day of the seventh month after their plan year ends. As a result, calendar-year plans generally must file by July 31 of this year (reporting on the 2018 plan year). Plans may request a two-and-a-half-month extension to file by submitting Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, by that plan's original due date.

As a reminder, group health plans sponsored by a governmental or church entity aren’t required to file a Form 5500, as those plans aren’t subject to ERISA. Additionally, unfunded, insured, or combination unfunded and insured health plans with fewer than 100 participants on the first day of the plan year are also exempt from the filing.

NFP has vendors available to assist with filings. Please ask your advisor if you need assistance.

Forms and Instructions »
Form 5500 EFAST2 »
Form 5558, Extension of Time »

PCOR Fee, Form 720 Filing Due July 31

The ACA imposed the PCOR fee on health plans to support clinical effectiveness research. The PCOR fee applies to plan years ending on or after October 1, 2012, and before October 1, 2019. The PCOR fee is generally due by July 31 of the calendar year following the close of the plan year.

PCOR fees are required to be reported annually on Form 720, Quarterly Federal Excise Tax Return, for the second quarter of the calendar year. Plan sponsors that are subject to PCOR fees but not other types of excise taxes should file Form 720 only for the second quarter. No filings are needed for the other quarters for such employers.

The PCOR fee is generally assessed based on the number of employees, spouses, and dependents that are covered by the plan. For plan years ending in 2018 on or before October 1, 2018, the fee is $2.39 multiplied by the average number of lives covered under the plan. For plan years ending between October 1, 2018, and October 1, 2019, the fee increased to $2.45 multiplied. Form 720 and corresponding instructions were revised to reflect the increased fee.

The PCOR fee can be paid electronically or mailed to the IRS with the Form 720 using a Form 720-V payment voucher. According to the IRS, the fee is tax-deductible as a business expense.

As a reminder, the insurer is responsible for filing and paying the fee for a fully insured plan. The employer plan sponsor is responsible for filing on a self-insured plan, including an HRA. A stand-alone dental or vision HRA would be accepted and wouldn’t be subject to the PCOR fee.

Form 720 »
Form 720 Instructions »