Employers operating in New Jersey (NJ) should be aware of two approaching deadlines. The first deadline relates to state reporting that’s required by the NJ health insurance individual mandate, and the second regards the commuter benefits law passed last year. Read more below as I discuss these two requirements and deadlines.
Health Insurance Market Preservation Act (passed due to the New Jersey individual mandate)
Who has to comply? Employers who employ New Jersey residents AND also:
- Are Applicable Large Employers (ALEs) with fully-insured or self-funded plans
- Are self-insured Non-ALEs
Does this include out-of-state employers? Yes.
What is the deadline to comply? March 31, 2020.
What is the penalty for non-compliance? No penalty specified, but state tax penalties may apply.
How does an employer comply with the state reporting requirements?
Insurers or Employers can file 1095 forms in two ways.
Registered filers can use the Division of Revenue and Enterprise Services’ (DORES) MFT SecureTransport service. Though MFT is the required system for filers of more than 50 forms, filers of fewer than 50 forms may use it as well. Taxpayers who have MFT SecureTransport service user credentials can now use them to submit the required health insurance coverage returns.
If you do not have a MFT SecureTransport service account, or need technical specifications and guidance, contact DORES. Once DORES receives your request and authorizes your account, you can expect to receive instructions on how to submit your health insurance coverage returns.
If you already have a MFT SecureTransport service account, you can use the same account to transmit the 1095 files provided the filename starts with NJHIM.
You will receive a submission receipt upon successful transmission which will serve as the acknowledgement. This receipt will be sent to the email associated with the MFT SecureTransport Account.
Where can I find more information? https://nj.gov/treasury/njhealthinsurancemandate/employers.shtml
NJ Commuter Tax Benefit
Who has to comply? New Jersey employers with at least 20 employees in the state. The benefit applies to employers and employees covered by the state’s unemployment insurance law. Employers covered by a collective bargaining agreement (CBA) are exempt until any current CBA expires.
Does this include out-of-state employers that don’t employ 20 employees in New Jersey? No.
What is the deadline to comply? March 1, 2020.
What is the penalty for non-compliance? $100 to $250 penalty for the first time any employer is found to be in violation of this requirement.
Where can I find more information? https://www.njtransit.com/var/var_servlet.srv?hdnPageAction=CommuterTaxTo
