This is a reminder that if you have established a Health Reimbursement Arrangement (HRA) that you utilize to fund deductibles or co-payments under your medical plan, you should check with your accountant about the Affordable Care Act mandated annual fee.
The fee (only $1 per person for plan years beginning on or after November 1, 2011 but before November 1, 2012) is for medical plans (paid by the insurance company for all fully insured plans), certain FSAs (does NOT apply to the Flexible Spending Accounts that are solely funded with employee contributions – referred to as ‘excepted benefits’) and HRAs.
The fee is nominal, however, the penalties and fines for failure to file will mount up. You must file/pay by July 31st following the end of your plan year utilizing form 720 (Quarterly Federal Excise Tax Return).
See the attached document for additional information.