Important Update Regarding New Jersey Employer Reporting Requirements

Important Update Regarding New Jersey Employer Reporting Requirements

Beginning January 1, 2019, New Jersey’s state individual mandate took effect. In an effort to enforce the individual mandate, New Jersey is requiring some employers who employed New Jersey residents during 2019 to file either IRS Forms 1095-B or 1095-C with the state in 2020. Importantly, this requirement applies to out-of-state employers that had employees residing in New Jersey during 2019. On January 28, 2020, the state issued important clarifications regarding which employers bear responsibility for filing either IRS Forms 1095-B or 1095-C for employees who resided in New Jersey during 2019. The state clarified that the insurance carrier is expected to file Forms 1095-B for New Jersey residents who participated in fully-insured plans (however, the updated guidance asserts that employers may be held liable if their carrier fails to file). New Jersey only expects employers sponsoring self-funded plans (including level-funded plans) to file either forms 1095-B or 1095-C for their employees residing in New Jersey. The appropriate forms for 2019 compliance must be filed with New Jersey electronically through the Division of Revenue and Enterprise Services’ (DORES) MFT SecureTransport service by March 31, 2020.

The updated guidance is copied below:

Fully-Insured Plans:

  • Single-Company, Applicable Large Employers (ALEs). ALEs generally are companies that employed an average of at least 50 full-time-equivalent employees on business days during the preceding calendar year. Health coverage provider (the insurer) files 1095-B for each covered member of the plan.
  • Single-Company, Not an Applicable Large Employer (Non-ALE). Non-ALEs generally are companies that employed an average of fewer than 50 full-time equivalent employees on business days during the preceding calendar year. In this case, the health coverage provider (the insurer) files 1095-B for each covered member of the plan.
  • Fully-Insured Employer Participating in a Multiemployer Plan. A plan sponsor (generally a board of trustees) files 1095-Bs for enrolled individuals.

Self-Insured Plans:

  • Single-Company, Applicable Large Employers (ALEs).  ALEs generally are companies that employed an average of at least 50 or more full-time equivalent employees on business days during the preceding calendar year: Employer files 1095-C or 1095-B for each person who was a full-time employee for at least one month of the calendar year and for any employee who was enrolled in the self-insured plan. New Jersey requires only Parts I and III of Form 1095-C be completed, but will accept fully completed forms as well. ALE members that offer employer-sponsored, self-insured health coverage to non-employees may use Form 1095-B for these non-employees, or ALEs may file a 1095-C using Code 1G in Part II, to report for non-employees. For this purpose, a non-employee includes a non-employee director, an individual who was a retired employee during the entire year, or a non-employee COBRA beneficiary. This also applies to a former employee who terminated employment during a previous year.
  • Single Company, Not an Applicable Large Employer (Non-ALE). Non-ALEs generally are companies that employed an average of fewer than 50 full-time equivalent employees on business days during the preceding calendar year. Employer files a 1095-B for each covered employee.
  • Self-Insured Employer Participating in a Multiemployer Plan. A plan sponsor (generally a board of trustees) files a 1095-B for each covered employee.

Action Items:

  • If your company sponsors a self-funded/level-funded health plan, or your fully-insured carrier is not filing Forms 1095-B with New Jersey, you should do the following:
  • If they already utilize a reporting vendor to assist with 1095 forms, they should confirm that the vendor is capable of filing returns for New Jersey residents.
  • If a vendor is incapable of assisting with New Jersey filing, Kistler Tiffany Benefits’ long-time partner, The Harrison Group, is offering a free-standing New Jersey filing service. If you would like to engage The Harrison Group’s reporting service, you can find their contact information here.
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