State Payroll: New Jersey

Last Updated: May 25, 2016 01:36PM EDT
Are you an employer operating in the state of New Jersey? If so, you've come to the right place to brush up on your tax responsibilities. While we've already written about federal tax obligations, we've consolidated everything you need to know about New Jersey state down to this short guide. Read on to learn about your payroll responsibilities in the state of New Jersey:  

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.


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 siteAll employers are also required to file the annual reconciliation of gross income tax withheld, Form NJ-W-3.

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.

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
 
Each calendar quarter, you're also required to report State Unemployment Insurance contributions (SUI). These taxes (paid for by both employees and employers) fund State Unemployment Benefits, which provides temporary benefits to workers that have become unemployed involuntarily. 
 
  • 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:
 
Name
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
 
NEW JERSEY WAGE REPORTING

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.

 
NEW JERSEY NEW HIRE REQUIREMENTS
 
New Jersey employers are required to provide the following information to the state directory, for each newly hired employee, rehire or contractor within 20 calendar days from the hiring date (every 15 days if using mag media). Reporting methods include using W-4 or equivalent, mail, fax, electronically or Internet. 
 
Employee's Name
Employee's Address
Employee's Date of Birth
Employee's Social Security Number
Date Employee first performed services for pay 
Employer's Name
Employer's Address
Federal Employer Identification (EIN)

Penalties
  • For late reporting: $25 
  • For being charged in case of conspiracy to not report a new hire: $500
NEW JERSEY PAY FREQUENCY REQUIREMENTS

Generally, New York requires that employees be paid no less then on a semimonthly basis. Monthly payments are permitted for exempt employees. The amount of time that can pass from the end of the pay period to when the employee must be paid in New Jersey, is 10 working days after the end of a pay period. 


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.
All payments must be made through the New Jersey Family Support Payment Center, unless directed by court order to pay someone else. Non-custodial parents who are not paying child support through income withholding must make payments as directed by court order at the frequency prescribed, whether it be weekly, bi-weekly, monthly, etc. Payments can be remitted electronically and through the mail.

NEW JERSEY WORKERS COMPENSATION INSURANCE 
 
New Jersey employers must have workers’ comp coverage or be approved for self-insurance. Specific insurance coverage requirements can be found on the Workers’ Compensation webpage provided by the State of New Jersey Department of Labor and Workforce Development. 

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.
 
 

info@fingertecusa.com
http://assets0.desk.com/
false
desk
Loading
seconds ago
a minute ago
minutes ago
an hour ago
hours ago
a day ago
days ago
about
false
Invalid characters found
/customer/en/portal/articles/autocomplete