NJ Healthcare Reporting Required Beginning 2020

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Beginning January 1, 2019, New Jersey required its residents to maintain health insurance or face a tax penalty.

This year employers must provide certification that employees are covered.

The law requires most people to have minimum essential health coverage throughout 2019 and beyond. Failure to have health coverage or to qualify for an exemption results in a tax penalty when 2019 New Jersey Income Tax returns are filed.

The tax penalty for the first year is $695 for adults, $347.50 per child or 2.5 percent of a taxpayer’s income, whichever is greater.

And like the federal health care law – the Affordable Care Act – employers are required to file proof that employees are covered by a health plan that provides minimal essential coverage.

Employers must submit 2019 coverage information electronically through New Jersey’s system for processing W-2 forms by March 31, 2020.  Currently, the existing IRS Forms 1094/5-B and 1094/5-C contain the information to verify enrollment and can be used.

Guidance here