New Jersey State Payroll Taxes
Manage New Jersey Requirements for Withholding and Filings for small, enterprise and exempt organizations/businesses with PayWow.
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New Jersey State Payroll Tax Information
PayWow equips your business with the latest resources on state withholding and filings.
New Jersey Withholding Requirements
The state of New Jersey requires all employers to withhold state income taxes from employees' paychecks each pay period and pay unemployment taxes. To know how much to deduct from the employee's paycheck, you must collect Form NJ W-4 instead of Federal W-4 to calculate state withholdings.
New Jersey does have a reciprocal agreement with Pennsylvania, state disability and family leave insurance. The disability insurance premiums must be paid by both the employer and employees to offset the cost of providing benefits. In addition to this, employers must withhold family leave insurance from employees’ wages too.
To report these deductions to the state, employers must first register with the NJ Department of Revenue and obtain the registration number. This number will usually be the same as that of the federal EIN with 000 at the end.
After you have got the registration number, you would need to complete Form NJ-REG to report withholdings and unemployment payments.
Please note that all forms can be filed only electronically.
Upon your registration, you will be provided with a state tax ID, state PIN, unemployment tax rate, and SDI rate. We suggest you record this information in PayWow to remit and file taxes on your behalf.
State Unemployment Insurance
All employers are supposed to contribute to the State Unemployment Insurance (SUI) that funds the New Jersey Department of Revenue to offer benefits to the unemployed. To pay unemployment taxes, the state mandates the use of electronic filing.
New Jersey Taxable Wage Base:
New Jersey SUTA wage base limit for 2020 is $35,300.
New Jersey Employer Contribution Rate:
Generally, the New Jersey SUI tax rate for 2020 is between .4 and 5.4%.
If you are a new employer then the New Jersey SUI tax for 2020 is 2.8%. Please note that unemployment taxes must be paid only by the employers and shall not be deducted from the employees’ wages.
The new employer rate is inclusive of 0.3825% Unemployment Compensation Fund and 0.0425% Workforce Development Fund.
Employer's Quarterly Tax &Wage Report- Form DOL-4N:
Form WR-30 is a quarterly wage report that must be filed by employers electronically to report unemployment taxes.
This report must be filed on or before the 30th day of the month following the end of the quarter.
| Quarter | Reporting Period | The Due Date will be on |
|---|---|---|
| 1 | January - March | April 30th |
| 2 | April - June | July 31st |
| 3 | July - September | October 31st |
| 4 | October - December | January 31st |
State Disability & Family Leave Insurance (SDI & FLI)
New Jersey does have a state disability insurance.
- New Jersey SDI wage base: $35,300 for 2020
- New Jersey SDI Rate: 0.26%
- New Jersey FLI wage base: $135,900 for 2020
- New Jersey FLI: 0.16 for 2020
State Labor Laws
New Jersey Minimum Wage Rate:
The state minimum wage rate for New Jersey is $11.0/hr, which is effective from January 01, 2020, and is higher than the current federal minimum wage rate. Overtime must be paid to employees at one half of their regular wage who work over 40 hours per week.
Though the state strictly insists on minimum wage payments, nursing homes, boardwalk and other seasonal amusements, summer camps, professional offices, and libraries hiring employees need not pay the minimum wage rate.
If you have tipped employees, you must pay wages such that their tip credits will and their wages will equal the state minimum wage.
You can add employees and their compensation types in PayWow. Once you do it, their paychecks will be automatically calculated.
Termination Pay:
Employers are required to follow the termination pay as mandated by the state. If employees resign on their own or are fired on any grounds, then they must be paid their regular wages along with any severance amount by the next regular payday.
New Hire Reporting
As an employer of the state of New Jersey, you must report all your new hires and rehired employees to the state agency within 20 days from their date of hire. The law mandates all employers to submit their employees’ new hire reports and the prime motive is to increase child support collections and prevent fraud.
Details Required to Complete New Hire Report:
Following are the details required to complete the new hire report:
Employer Details:
Employer Name, Address, State Employer Identification Number(Unemployment Insurance Number), Federal Employer Identification Number (FEIN).
Employee Details:
Employee Name, Address, Social Security Number, Date of Hire, Date of Birth (Optional).
Uses of New Hire Report:
If you have the new hire reports, those will be used for:
- Establishing and enforcing child support orders
- Detecting Unemployment Benefits overpayments and fraud
- Detect Workers' Compensation overpayments and fraud
You can report new hires electronically, online, or through paper. If you choose to fax, send them to the below address.
Here is the address:
New Hire Operations Center,PO Box 4654,
Trenton, NJ 08650-4654,
Phone: 877-654-4737,
Fax: 800-304-4901.
Penalties:
Employers failing to comply with the new hire report laws will have to pay a penalty of $10 for every report they miss to file. In the case of conspiring with their employees to not submit the report, they will face a penalty of $100.
Remit Withholding for Child Support
As an employer, you will be required to remit child support payments from your employees’ wages if any of your employees are liable to pay for child support. You will receive a withholding notice from the state agency asking you to remit payments to the below address:
New Jersey Family Support Payment Center,PO Box 4880,
Trenton, NJ 08650-4880,
Phone: 800-559-3772.
The amount remitted will in turn be sent over to the custodial parent. PayWow lets you record any type of garnishments and during payroll processing, such deductions will be debited from the employee's paycheck.
For more information on this, please visit New Jersey Child Support.
Local Taxes
The city of Newark in New Jersey does have payroll taxes. For more information on this, click here. Along with this, Jersey City also has local taxes.
Reciprocal States
The state of New Jersey does have reciprocal agreements with Pennsylvania. All employers must withhold New Jersey state taxes both from state residents and nonresidents. But, under the Reciprocal Tax Agreement, Pennsylvania is one such out-of-state state whose residents working in New Jersey are exempt from taxes.
Pennsylvania residents working in New Jersey must complete the Employee’s Certificate of Nonresidence in New Jersey (NJ- 165)/
New Jersey State Tax Forms
Listed below are the required New Jersey State Forms:
| DOR: Department Of Revenue | DES: Department of Employment Security |
|---|---|
| Form NJ-927, Quarterly Return | Form WR-30, Employer Report of Wages Paid |
| Form NJ-500, Monthly Return | New Hire Report Form |
| Form W-2, Wage and Tax Statements | |
| Form NJ-W-3, Annual Reconciliation of Tax Withheld | |
| Form NJ-W-4, Employee Withholding Allowance Certificate |
Withholding Tax Forms
Form NJ-927, Quarterly Return & Form NJ-500, Monthly Return
The state requires all employers, excluding domestic workers, to file the quarterly return, NJ-927 to report taxes withheld for the quarter. Even if there were no taxes withheld, employers must submit Form NJ-927.
All the payments must be made by the 30th of each month following the end of the quarter. In case, you have businesses at multiple work locations under the same FEIN, you must report the withholdings of all the locations combined in a single form.
Form NJ-500 must be filed monthly by the employers if the taxes withheld for each month is > $500. For the third month of the quarter, employers are required to submit the monthly payments in the quarterly return.
If the tax liability for any of the months exceeds $10,000, you’ll be designated as a weekly payer and must file form NJ-927 W.
Form NJ-W-3, Annual Reconciliation of Tax Withheld
Any employer who is withholding taxes and remitting it to the state must file an annual reconciliation form W-3 on or before February 15 of the following year. If the due date falls on a weekend/bank holiday, returns are due the next business day.
Form NJ-W-3 must be filed along with copies of all supporting documents (W-2, 1099-R, 1099-MISC, W-2G, etc.).
Deadline to file NJ-927, 500 & W-3
As Form 927 falls due each quarter, the deadline is on the 30th of each month following the end of the quarter.
| Quarter | Reporting Period | The Due Date will be on |
|---|---|---|
| 1 | January - March | April 30th |
| 2 | April - June | July 31st |
| 3 | July - September | October 31st |
| 4 | October - December | January 31st |
If the due date falls on a Saturday, Sunday, or holiday, then filings can be made on the next business day.
Form NJ-500:
All your monthly payments are due by 11:59 p.m. on or before the 15th day of the month following the month it was collected.
Form NJ-W-3:
This form falls due within 30 days after the last month the business was active or wages were paid.
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Accurate & Automatic Payroll Software
Federal & State Tax Withholding
On-time Federal & State Tax Deposits
