As we approach the end of the ACA reporting and filing season many employers are faced with the job of sending information to the state of New Jersey for those employees who are residents of the state in tax year 2019. Attached is a useful outline that may help you save time when filing to NJ.
If you wish to outsource the project to BenefitScape we would be more than pleased to help you or even answer any questions!
At first glance it seems quite simple but as we all know the devil is in the details. The purpose of this operational outline is to share with interested parties a way to go about achieving an accurate filing. Since paper is not an option e-filing procedure is the only method available. In our case if an employer only has paper forms, where the SSN is not redacted, we scan the forms and create the XML.
Like most e-filing procedures it requires registration and access to the New Jersey SMTP site. The data to be sent is essentially the same as is provided to the IRS air system with some exceptions such as New Jersey would prefer to receive only those New Jersey state residents and does not require form 1094 or the envelope and manifest that is used to send to the federal government.
There are also some issues, for example the current address may not be in New Jersey although the employee could’ve lived in New Jersey a partial year, defined as 15 days or more during the month. If the plan is fully insured the issuer may have taken care of this responsibility. Maybe. Best to make sure since the responsibility and the penalty are withy the employer.
Attachment(s): NJ Data Process XML to SFTP Ver 1.2