Updated Guidance for Employer Health Coverage Filings

On December 13, 2019, the state of New Jersey published updated guidance relating to the New Jersey shared responsibility requirement (the requirement for New Jersey residents to carry minimum essential health insurance coverage or pay a tax penalty — a state individual mandate). Beginning in 2019, the New Jersey Health Insurance Market Preservation Act (HIMPA) requires third-party reporting to verify health coverage information supplied by individual payers of New Jersey’s income tax. Under HIMPA, employers and all other providers of MEC must file information with the Division of Taxation on or before March 31, 2020. Importantly, the state has no plans to offer filing extensions.

The updated guidance states that out-of-state employers who employ New Jersey residents have the same filing requirements as in-state businesses. The guidance includes important information on what forms are required and from whom. Specifically, employers must file the following:

  • Small fully insured employers are not required to file anything with NJ (the carrier will send 1095-B)
  • Small self-insured employers will file Forms 1095-B with NJ
  • Large fully insured employers will file Forms 1095-C with NJ
  • Large self-insured employers will file Forms 1095-C with NJ

Employers are required to submit forms electronically — there is no paper filing option available. Employers will need to file electronically to the state using the Division of Revenue and Enterprise Services’ MFT SecureTransport service. The guidance includes instructions on how to register for an account and use the service.

Employers with employees in New Jersey should review the updated guidance and determine their filing obligations. Employers should file by March 31, 2020.

Updated Guidance »