NEW JERSEY TAX REGISTRATION FILING
For tax and employer purposes, every business must register their business by filing Form NJ-REG. Employers can file online using New Jersey's online business registration or by downloading the paper forms and instructions found in the Business Registration Packet supplied by the New Jersey Department of Treasury.
The information you provide in the Form NJ-REG will determine your liability as an employer to pay withholding taxes. Additionally, filing Form NJ-REG ensures that your business is registered under the correct tax identification number and that you will receive the proper returns and notices. Normally you will use your federal identification number (FEIN) as the New Jersey tax information number, which your business is required to have. If you do not have your FEIN, you may apply for one as you fill out the online NJ-REG or you may apply directly to the IRS online.
Additionally, if you are are a new business entity, including a corporation, limited liability company, limited partnership and limited liability partnership, you must file an original formation/authorization certificate with the State of New Jersey. The filing process can be completed online or the Business Registration Packet.
Weekly: Employers with a prior year liability of $10K or more for employer income tax withholdings must remit and report their taxes on or before Wednesday of the week following the week containing the payday or paydays on which the taxes were withheld.
NEW JERSEY WITHHOLDING FORMS
New Jersey provides a basic New Jersey Employer Tax Guide that contains the actual withholding tables and calculations for regular payroll withholding, so we suggest that you read this guide.
You can file, amend and review previous quarterly reports online through the New Jersey Division of Revenue Online Filing Service, as well as make payments for current or prior quarters (credit card, EFT, and e-check are accepted). Beginning first quarter 2009, paper filing of withholding returns is no longer accepted; all insurance contributions, wage reports and income tax withholdings (Forms NJ-927, NJ-927-W, NJ-927-H, NJ 500 and WR-30) must be filed electronically. File Form NJ-W4 to file your quarterly return and pay withholding taxes.
Each calendar quarter, New Jersey employers are required to file the Employer's Quarterly Report, Form NJ-927 or, NJ-927-W. These forms must be filed on or before the 30th day of the month following the end of the quarter. These two forms are used to report NJ gross income tax withheld as well as contributions for UI, healthcare subsidy, workforce development, disability insurance, and family leave insurance.
Employers are also required to file Form WR-30, Employer Report of Wages Paid, electronically on or before the 30th day of the month following the end of the quarter. These forms can be filed on the Division of Revenue's Web site. All employers are also required to file the annual reconciliation of gross income tax withheld, Form NJ-W-3.
See monthly and annual payment classifications and requirements here.
Employers must file W-2s with the New Jersey Department of the Treasury. Both form NJ-W-3 Annual New Jersey Gross Income Tax Reconciliation of Tax Withheld and W-2s can now be reported electronically. Instructions for reporting W-2 information electronically can be found here.
NEW JERSEY DEFERRALS, SECTION 125, 401(K), ETC.
In the state of New Jersey, cafeteria plans do not adopt the federal income tax treatment as governed by IRS Section 125. Typically, contributions to cafeteria plans are not includable in taxable wages, providing a reduction in an employee’s gross income, and thereby reducing their tax liabilities for payroll taxes. Under New Jersey gross income tax law, cafeteria plans are includable in New Jersey taxable wages and subject to gross income tax withholding as well as unemployment tax withholding. There is one exception to this general law.
Contributions to deferred compensation and retirement plans (other than 401(k) plans) are also subject to New Jersey income tax. However, 401(k) plan deferrals are taxable for unemployment purposes.
NEW JERSEY SUPPLEMENTAL WAGE TAX RATE
Irregular types of payments employees receive in addition to regular wages are known as supplemental wages (i.e. overtime pay, bonuses, and commissions). These wages are often taxed at a flat rate for federal and state income tax withholding. However, New Jersey has no flat rate provision for supplemental taxation; the supplemental tax rate changes depending on wages earned. Currently, employers must withhold 9.9% of gross supplemental wages over $500,000. Find withholding tax tables within the New Jersey Employer Tax Guide.
NEW JERSEY UNEMPLOYMENT
- In order to establish liability to pay Unemployment Insurance, you must first register your company online with the New Jersey Unemployment Insurance department using form NJ-Reg through New Jersey's Online Business Registration Portal (see instructions under 'Tax Filing' listed above). This tax return also encompasses Temporary Disability Insurance (TDI), Workforce Development and Family Leave Insurance. SUI, TDI, and Workforce Development are shared taxes between workers and employees.
- Quarterly employer reports must be submitted to the Department of the Treasury using New Jersey’s online filing service. Click here to access the New Jersey Division of Revenue Online Filing Service.
- New York state’s unemployment taxable wage base for 2016 is $32,600.
- Electronic reporting of wage taxation is required. New Jersey does not accept state wage reporting via magnetic media. NASWA/ICESA format is also not accepted.
Unemployment records must be retained in New Jersey for a minimum period of 5 years. This information generally includes:
|Social Security Number|
|Dates of hire, separation, rehire and termination|
|Wages by period|
|Payroll pay periods and pay dates|
|Date and circumstances of termination|
|Time lost during a payroll period because the employee was unavailable to work|
If you are required to withhold New Jersey tax, you must register with the Department of Revenue as a withholding tax agent electronically here. Wage reporting must be submitted electronically as of the first quarter of 2009 by filing Form WR-30, which you can do here.
New Jersey also requires employee pay stubs to contain the following information:
- Statement of total wages and deductions
NEW JERSEY OVERTIME REQUIREMENTS
New Jersey law requirements are no different than the federal overtime requirements. Employees are entitled to overtime pay (1 ½ regular rate) for hours worked over the weekly maximum of 40 hours a week.
|Employee's Date of Birth|
|Employee's Social Security Number|
|Date Employee first performed services for pay|
|Federal Employer Identification (EIN)|
- For late reporting: $25
- For being charged in case of conspiracy to not report a new hire: $500
NEW JERSEY PAYMENT ON TERMINATION REQUIREMENTS
Whether terminated voluntarily or involuntarily, once terminated, termination wages are due to employees the next regular payday, or, the employee can request their pay be sent by mail.
NEW JERSEY DISABILITY AND FAMILY LEAVE
Under the New Jersey Temporary Disability Benefits Law, employers who employ one or more individuals and pay wages of $1,000 or more in a calendar year must contribute funds to provide benefits to employees who are unable to work due to injuries or illnesses that do not arise out of or in the course of employment. An employer can either participate in the State Plan administered by the Department of Labor and Workforce Development, or establish their own Private Plan to provide benefits.
For 2016, employers are required to contribute between $32.60 and $244.50 on the first $32,600 earned by each employee during this calendar year. For 2016, employees are required to contribute 0.20% on the first $32,600 (taxable wage base) in covered wages earned during the calendar year, with the maximum worker contribution capped at $65.20. The contribution rate for employers varies from 0.10% to 0.75%.
NEW JERSEY UNCLAIMED WAGES
The Unclaimed Property Administration of the New Jersey Department of the Treasury is responsible for handling unclaimed wages and property. According to escheat laws in New Jersey, unclaimed wages must be paid over to the state after one year.
NEW JERSEY TIP CREDIT
In New Jersey, payroll law allows employers to apply employee tips up to, but not exceeding, $5.12 an hour in order to meet the minimum wage.
NEW JERSEY MEAL & REST PERIOD REQUIREMENTS
New Jersey employers are not required to provide rest of meal breaks, except for minors under 18 years of age, who must be given a 30-minute lunch period during shifts of 5 or more hours.
NEW JERSEY WAGE & HOUR RETENTION
Employers must keep a record of each employee containing detailed information (which can be read here) for a period of six years at the place of employment or in a central office in New Jersey.
NEW JERSEY MINIMUM WAGE RATE
The minimum wage in New Jersey is $8.38 per hour as of January 1, 2016.
NEW JERSEY CHILD SUPPORT REQUIREMENTS
New Jersey has the following provisions for child support deductions:
- When to start Withholding? First pay period ending after postmark date.
- When to send Payment? Payday.
- When to send Termination Notice? "Promptly".
- Maximum Administrative Fees? $1 per payment.
- Withholding Limits? 50% of disposable earnings. 60% if employee is not supporting another spouse or child.
NEW JERSEY WORKERS COMPENSATION INSURANCE
While we have summarized this information for easy reading, we know perfectly well that payroll taxes and the laws that govern them can be perplexing. That's why we handle all our clients' tax reporting obligations and file their local, state, and federal payroll taxes so they never have to worry. Interested? You can learn more and sign up at FingerCheck360.