Starting with Tax Year 2019, the New Jersey Health Insurance Market Preservation Act (Market Preservation Act) requires third-party reporting to verify health coverage information supplied by individual payers of New Jersey’s Income Tax.
Coverage providers, please note that you must:
PLEASE NOTE: New Jersey is not following IRS practices on 1095-B forms for the 2019 tax year. The IRS is allowing some filers to notify primary enrollees that a 1095-B form is available if they request it. New Jersey requires that a 1095-B be sent to each primary enrollee.
Out-of-State Employers Who Employ New Jersey Residents Have the Same Filing Requirements as in-State Businesses.
These requirements are not limited to businesses that withhold New Jersey payroll taxes. If you are an out-of-State employer who provides health coverage, you must ensure that we receive any required 1095 document for each New Jersey resident you employ. Insurers, government agencies, exchanges, multiemployer plans, and all others responsible for reporting Minimum Essential Coverage on behalf of New Jersey residents also must file the required information with the State.
Guidance on What Forms Are Required From Whom
New Jersey will not require 1094 forms for 2019, though we will accept them if a coverage provider sends them.
The State expects to receive filings of Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. Filers of Form 1095-B, Health Coverage, should use that form for New Jersey filings.
If the federal government discontinues, substantially alters, or makes unavailable Forms 1095-B or 1095-C, New Jersey will deploy similar forms and require they be sent to the State and to New Jersey taxpayers.
Forms for Coverage Obtained on Healthcare.gov or State exchanges
Insurers who provide coverage through policies sold on the federal Healthcare.gov exchange or any other exchange must provide a 1095-B to the New Jersey Division of Taxation for any primary enrollee who purchases coverage. A 1095-A or 1095-B form also must be sent to the primary enrollee.
Guidance on Forms Sent to New Jersey:
Coverage providers can send 1095 files containing data pertaining only to part-year and full-year residents of New Jersey, or, for ease of filing, New Jersey will accept the exact same 1095 data files sent to the federal Internal Revenue Service, even if the files include data about individuals who are not residents of New Jersey. Filers who provide information on non-residents of New Jersey should consult privacy and other laws pertaining to residents of other States before sending any sensitive or personal data to New Jersey.
Requirements for filings vary depending on whether an employer is fully insured, self-insured, or a participant in a multiemployer plan. The size of a company also affects reporting requirements, as detailed below:
Fully insured employers should:
Self-insured employers participating in multiemployer plans should:
Under New Jersey’s Health Insurance Market Preservation Act, insurers, employers, government agencies, multiemployer plans and other entities that provide health insurance must submit required information returns to New Jersey reporting on individuals’ health insurance coverage. There is no paper filing option available.
Insurers or Employers are able to provide confidential or sensitive data to the State of New Jersey using the Division of Revenue and Enterprise Services' (DORES) MFT SecureTransport service.Taxpayers who have MFT SecureTransport service user credentials can now use them to submit the required health insurance coverage returns. If you wish to join our testing program, do not have an MFT SecureTransport service account, or need technical specifications, contact us. Once DORES receives your request and authorizes your account, you can expect to receive instructions on how to submit your health insurance coverage returns.
New Jersey will accept returns submitted in bulk filing. A company responsible for submitting files for multiple companies can establish a single MFT SecureTransport Account and submit a single file containing the information for the various companies. We will not accept files in a zipped file format.
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.
If you are required to submit a correction file to the IRS, New Jersey will also require you to submit the correction file.
XML Schemas and other information for transmitters are provided by tax year:
2019 Tax Year will accept 1095A, 1095-B, and 1095-C.
NJHIMPA does not require Forms 1095-B or 1095-C be provided separately to children covered by their parents’ health plans. This applies regardless of their residency, beyond the requirement under 26 U.S.C. s.6055, as that section was in effect and interpreted on December 15, 2017.
It is recommended that employers advise employees to provide a copy of any Form 1095-B or 1095-C containing coverage information to their children residing in New Jersey