There’s a lot to process with tax season, but do new rules every year feel overwhelming? When I first stumbled across New Jersey’s Shared Responsibility Reporting, I conjured images of endless paperwork and caffeine-fueled rushes. But that’s far from the truth! This compliance necessity aims to meet state health mandate requirements by confirming health coverage exists. It also aids employers in staying compliant. Let’s break down what it means, why it’s important, and how to easily implement it.
What Is the Shared Responsibility Requirement?
Beginning in 2019, New Jersey law requires residents to have at least some minimum essential health benefits insurance coverage due to the Health Insurance Market Preservation Act of 2015. Without minimum essential coverage, residents face a Shared Responsibility Payment (SRP) on their income tax return—which functions similarly to taxes on unclaimed value-based insurance credits. To maintain comprehensive healthcare access within the state’s insurance market balance, employers who file taxes also report covered individuals under their plans. I recall going through this for the first time when my wife launched her small business a few years back; that feeling was overall daunting until broken into digestible chunks. The goal? Monitors determine if employees are eligible or exempt from coverage alongside documented proof provided.
Who Needs to Report?
If you’re an employer with at least one employee from New Jersey, the chances are high that you are liable. This includes businesses having full-time equivalent employees who work 30 hours or more in a week, and even out-of-state companies employing New Jersey workers. The state relies on Forms 1094 and 1095 (B or C) for tracking coverage, so if you’re submitting these due to ACA obligations, you are almost covered.
To stay compliant, it’s important to have an accurate record of employee work hours throughout the year. Apps like Controlio can simplify this by automatically tracking and reporting employee hours, ensuring your documentation aligns with state and federal requirements.
• Fully Insured Plans: For NJ residents, insurers usually handle the 1095-B filing.
• Self-Insured Plans: You are liable for 1095-C filings, specifically Part III, which relates to covered individuals.
My wife’s bakery’s insurance handled most of the filings, but like many small business owners, she had to confirm everything was submitted by the deadlines—which is another layer of stress for business owners! For more details, check out this guide by the Controlio app.
How to File: Keep It Simple
The New Jersey Department of Labor (NJDOL) uses MFT SecureTransport (or AxWay) for W-2s and both electronic submissions and filings. An account with Captiva is mandatory for submitting documents with over 250 returns, which grants access to electronically submit documents needed to close accounts. Set deadlines coincide with federal ACA deadlines—March 2 for employee form submission and March 31 for state filing submission. I assisted a buddy in setting up their Axway account and utilized the Controlio app for tracking work hours and employee coverage. It cut down on the mundane, manual work so we could focus on actually growing the company instead of sifting through countless spreadsheets.
Tips for Avoiding Compliance Risks
No one wants to be surprised by an audit or slapped with a fine! Here is some advice on how to stay compliant:
• Verify Insurers: With fully insured plans, verify that your insurer is submitting 1095-Bs for NJ residents.
• Adequate Data Checks: Confirm covered members’ names, SSNs, and months of coverage are accurate on 1095-C forms.
• Rectify Mistakes Immediately: If you file with the IRS, corrections should also be sent to NJ, clearly marked as replacements.
This was a lesson learned when filings from New Jersey were delayed due to an employee address typo.
Reporting Justifies Every Effort
Protecting your business with trust-building courtesy reporting may seem counterintuitive, but avoiding fines, defending claims, stabilizing premiums, and preventing tax penalties makes it worthwhile. Supporting healthcare affordability goals for the state of New Jersey also contributes value in the form of good executive reporting, especially when done accurately. When I noticed how my proper compliance reporting aided an employee in avoiding an SRP, that felt like a tiny victory. It’s not merely counting figures; it’s about individuals.
Final Comment: Bend the Compliance Line
New Jersey’s Shared Responsibility Reporting does not need to be problematic. By knowing who needs to file and using the Controlio app for compliance reporting in NJ, everything stays organized, ensuring workflow remains seamless and hassle-free. Finding control during your time as a small business owner or while managing big teams is centered around keeping employees protected while handling business legal stipulations smartly on every level. So grab a coffee, set up an Axway account, and then get those forms done because you can very well achieve everything set out as a reachable goal!
