Request a Demo

New Jersey Payroll Tax Facts

November 21, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of New Jersey.

Select a state or federal tax guide
Skip to end of table of contents

The Garden State has a slightly complex set of minimum wage rates, which vary based on the nature of an organization’s business. The state also has a Paid Sick Leave program guaranteeing time off to employees within its borders.

When it comes to processing payroll, New Jersey-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated November 21, 2024. It is not intended as legal or tax advice.

New Jersey Payroll Tax Rates

New Jersey State Income Tax (SIT)

New Jersey's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax. Those who earn $100,000 or more annually can refer to the state's Tax Table guide for more information. Those who earn less than $100,000 annually can use either the state's Tax Table guide or its Tax Rate Schedules.

Additional New Jersey SIT Details

Supplemental Withholding Computation

Rates vary based on when supplemental wages are paid:

  • If they’re paid simultaneously with regular wages, total the employee’s regular and supplemental wages and withhold at the appropriate rate for the combined sum.
  • If supplemental wages are paid at a different time than regular wages, make withholdings from the supplemental wages without any exemption allowances the employee lists on Form NJ-W4.

Valid Filing Statuses
  • MS = Married / Civil Union Filing Separately
  • MJ = Married / Civil Union Filing Jointly
  • S = Single
  • HH = Head of Household
  • QW = Qualified Widow(er) / Surviving Civil Union Partner

Exemptions

Number of allowances

Form W-4

Form NJ-W4

Reconciliation Frequency

Quarterly


New Jersey State Unemployment Insurance (SUI)

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

New Jersey SUI Tax Details

Taxable Wage Base

$42,300

Employee Subject to Tax

Yes; 0.3825% up to taxable wage base

Rates for Experienced Employers

0.60% – 6.40%

Rates for New Employers

2.9825%

Effective Period

Fiscal Year (July 1 - June 30)

Voluntary Contributions Allowed

Yes; must be paid within 30 days after rate notice mailing, unless an extension has been granted for up to an additional 60 days or until October 28 of the current calendar year, whichever is earlier.
Workforce Development Partnership Fund
  • 0.0425% for employees
  • 0.1175% for employers


New Jersey Temporary Disability Insurance (TDI)

TDI benefits are funded by employees through mandatory payroll deductions from each paycheck. However, in New Jersey, only employers contribute to the state’s program, and their rates differ based on how long they’ve been operating.

New Jersey SDI Tax Details
Maximum Taxable Employee Earnings $161,400
Maximum Taxable Employer Earnings $42,300
Employee Deduction Rate 0.00%
Maximum Employee Deduction Amount $0.00
Rates for Experience Employers Varies based on employer's experience rate
Rates for New Employers 0.50%


New Jersey Paid Sick Leave (PSL) Taxes

The state of New Jersey doesn’t require employers to collect PSL taxes, but it does have a program providing such leave to eligible employees:

New Jersey PSL Details
Covered Employees All full-time and part-time employees
Exempt Employees
  • Individuals employed in the construction industry under a union contract
  • Per diem healthcare employees
  • Public employees who are provided with sick leave at full pay under any other state law or rule
  • Independent contractors who do not meet the definition of an employee under state law
Accrual Method(s) 1 hour of leave per 30 hours worked
Annual Accrual Cap 40 hours
Carryover Maximum 40 hours
Frontloading Allowed Yes
FAQs Earned Sick Leave FAQ


New Jersey Paid Family and Medical Leave (PFML) Taxes

Like SDI, New Jersey’s Family Leave Insurance (FLI) program is funded via mandatory payroll deductions:

New Jersey FLI Details
Covered Employees All who have made tax contributions to the program, except for federal government employees, out-of-state employees, faith-based organizations, and workers who aren’t hired employees (e.g., independent contractors).
Covered Employers
All
Tax Rate 0.09% up to wage base limit
Wage Base Limit $161,400
Maximum Leave Available 12 consecutive weeks or 8 nonconsecutive weeks per 12-month period
Wage Replacement 85% of average weekly wage* up to maximum benefit rate
Maximum Benefit Rate $1,055 per week
FAQs FLI FAQs for Employers

*Calculated by dividing the employee’s base annual salary by the number of weeks they earned more than $283.


New Jersey Local Taxes

In addition to the state-wide taxes mentioned above, the following cities and localities also have unique tax and/or wage laws.

  • Newark has a 1% quarterly tax for employers.
  • Jersey City also has a 1% quarterly tax for nonresident employees if the wages earned are $2,500 or more.

Miscellaneous New Jersey Tax Information

New Jersey Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. New Jersey currently only has a reciprocal agreement with Pennsylvania, which states that Pennsylvania employers are not required to withhold Pennsylvania SIT from New Jersey residents and vice versa (a certificate of non-residence is required). 

New Jersey residents working in Pennsylvania are, though, subject to local Pennsylvania withholding taxes, and may have those taxes included when determining how much to withhold from earnings for New Jersey SIT. In Philadelphia, for example, local withholding taxes can be considered to the point where the employee may be exempt from New Jersey SIT altogether.


New Jersey Minimum Wage Rates

Wage Type

New Jersey Rates

Federal Rates

Minimum Wage

$15.13
$12.01 (agricultural employers)
$12.93 (seasonal and small employers with fewer than 6 employees)
$17.13 (long-term care facility direct care staff)

$7.25

Tipped Minimum Wage

$5.26

$2.13

Actual Tip Credit

$9.87

$5.12

Paying Payroll Taxes in New Jersey

New Jersey Payroll Tax Due Dates

Remittance due dates for New Jersey payroll taxes vary based on the type of tax being paid and the amount of tax owed.

Tax Type Frequency Details
Income Weekly Employers who owe $10,000 or more in state income tax withholdings from the previous year must remit taxes by the Wednesday following any payday(s) within the preceding week (Sunday through Saturday). For example, if an employee is paid on Monday the 1st, tax withholdings for that paycheck are due by Wednesday the 10th.
Monthly/Quarterly

Employers who don’t meet the criteria for a weekly schedule must remit withheld taxes on a monthly or quarterly basis.

If the taxes owed for each of the first two months in the quarter total $500 or more, payments are due by the 15th of the following month.

If the amount owed each month is less than $500, payments are due at the end of the quarter and remitted no later than the 30th day of the month after the quarter ends.

  • Q1 (Jan – Mar): April 30
  • Q2 (Apr – June): July 30
  • Q3 (July – Sept): October 30
  • Q4 (Oct – Dec): January 30
Annually Employers who withhold federal taxes for household workers must report and remit withheld state taxes by January 31 of the following calendar year.
SUI, TDI, and FLI Quarterly Payments are due no later than the 30th day of the month after the quarter ends, regardless of whether that date falls on a weekend or national holiday.
Local Quarterly Payments must be submitted no later than the 30th day of the month after the quarter ends.


New Jersey Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Treasury for withholding tax topics and the Department of Labor & Workforce for unemployment tax topics.

Registration Details

Department of Treasury

Department of Labor & Workforce Development

Phone

 (609) 292-6748 (609) 292-9292

Online Registration

 Online Business Registration Page

Registration Instructions

 Online and Phone Registrations are available. Account numbers will be issued in 3-7 days via the online process or 3 weeks via mail. Note, the same account number for each tax type will be issued under the combined registration.


New Jersey Tax Withholding Payment Options

Any employer with a tax liability of $10,000 or more (for any of the above taxes) must submit payments electronically via one of the following methods:

Employers preferring to use ACH transactions must first enroll in the state’s Electronic Fund Transfer (EFT) program.

Additional New Jersey Payroll Tax Resources

 

This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.

011002000110a-taxservices-fullwidth

Get Taxes Done Right, Without the Stress

We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.

Payroll Tax Services