Comprehensive Guide to New Jersey Tax Compliance and Pay Stub Generation
For entrepreneurs and businesses operating in New Jersey, understanding the legal landscape surrounding payroll and providing pay stubs to employees and contractors is crucial.
This guide elucidates the laws and regulations pertinent to employers in New Jersey, ensuring compliance and effective management of payroll processes.
Pay stub regulations in New Jersey
1. Are pay stubs required by law in New Jersey?
Employers in New Jersey must provide their employees with pay stubs every payday.
2. How often do you need a pay stub in New Jersey?
You will need to pay your employees at least semimonthly or monthly. As pay stubs are mandatory in New Jersey, you will need to provide pay stubs every time you pay your employees.
3. What information can be included on a pay stub in New Jersey?
The following information can be included in employee pay stubs:
- Employee information such as name, last 4 digits of social security number, and address
- Employer information such as name, employer identification number (EIN), and address
- Pay period
- Gross earnings before deductions
- Taxes withheld
- Employee contributions
- Deductions
- Net pay
4. Does New Jersey have a state income tax?
Yes, state income taxes are applicable to employees in the state of New Jersey.
5. Are there any other taxes applicable to New Jersey?
Yes. The city of Newark has local payroll taxes for employees.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee's exemption status from state withholding
- Employee's applicable status for New Jersey SUI and SDI
- Employee's applicable status for family leave insurance
- Information such as filing status, total allowances, rate code (A, B, C, D, or E), and additional state withholding.
New Jersey wage and hour laws
Employers in New Jersey must adhere to wage and hour regulations, which include guaranteeing that non-exempt employees receive minimum wage, proper compensation for overtime, sufficient meal and rest breaks, and accrued paid time-off benefits.
These regulations encompass various aspects of employment law.
New Jersey Minimum wage
As of 2024, New Jersey law mandates that employers must provide workers with at least the minimum hourly wage, ensuring compliance with legal standards. The basic minimum rate per hour in New Jersey stands at $15.13, with adjustments made annually according to a predefined formula. Additionally, there exists a minimum wage of $13.73 per hour for seasonal and small employers with fewer than 6 employees.
Overtime pay
According to the law, employers are obligated to compensate their employees at a rate of time and one half per hour for any hours worked beyond the standard 40 hours in a workweek
Meal break and Rest break
Employers in New Jersey are not required by law to provide meal and rest breaks to their employees.
Paid time off and leave
Employers in New York are required to provide employees with both compulsory and optional leave benefits.
| Required Leave | Non-Required leave | |
|---|---|---|
| paid | Unpaid | Paid or Unpaid |
| Sick leave - one hour for every 30 hours worked | New Jersey Family Leave Law -upto 12 weeks | Vacation leave |
| Jury duty leave | Bereavement leave | |
| Military leave | Holiday leave | |
| Witness leave | Voting leave | |
New Jersey State payroll taxes 2024
In New Jersey, payroll taxes are categorized as:
- New Jersey Personal Income Tax(PIT)
- New Jersey State Unemployment Insurance (SUI)
- New Jersey Temporary Disability Insurance (TDI)
- New Jersey Paid Family and Medical Leave (PFML)
New Jersey Personal Income Tax(PIT)
In New Jersey, state personal income tax rates fluctuate based on an individual's filing status and income level, which can include Single, Married Filing Separately, Married Filing Jointly, and Head of Household.
For Taxable Year 2024, New Jersey's individual income tax rates are structured across the following brackets: 1.400%, 1.750%, 3.500%, 5.525%, 6.370%, 8.970%, and 10.750%.
New Jersey State Unemployment Insurance (SUI)
In New Jersey, the State Unemployment Tax Act (SUTA) was enacted to support individuals facing unemployment by providing unemployment benefits. This legislation enables the state to collect the funds needed to distribute unemployment insurance benefits to eligible individuals experiencing joblessness.
- In 2024, New Jersey's SUTA rates span from 1.200% to 7.000% with a taxable wage base set at $42,300.
- The SUTA rate for New Jersey New employers is 3.4% in 2024 .
- Additionally, the maximum weekly benefit for unemployment insurance stands at $854.
New Jersey Temporary Disability Insurance (TDI)
Temporary Disability Insurance offers financial assistance to employees who are unable to work due to illness, injury, or disability unrelated to their job. The majority of employers in New Jersey are mandated to provide Temporary Disability Insurance coverage for their employees.
For the calendar year 2024, employees are not required to make contributions, while employers must contribute to Temporary Disability Insurance. The employer contribution is mandatory, with a set Taxable Wage Base of $42,300 for 2024. Additionally, the maximum weekly benefit rate for Temporary Disability Insurance in 2024 is $1,055.
New Jersey Paid Family and Medical Leave (PFML)
In New Jersey, Family Leave Insurance provides cash benefits for up to twelve weeks. It can be used for bonding with a new child, caring for a sick family member, or dealing with domestic/sexual violence.
In 2024, workers contribute 0.09% of covered wages earned during the calendar year, up to a wage cap of $161,400. The maximum contribution for workers in 2024 is $145.26. This contribution is deducted from the employee's weekly wages by the employer.
New Jersey payroll tax filing
- Report of New hire Employees and Independent Contractors
- New Jersey Personal income tax filing
- New Jersey Employers Quarterly Reporting and Payment (Form NJ-927)
Report of New hire Employees and Independent Contractors
The New Jersey Child Support Employer Services team wishes to remind employers of their duty to report all newly hired and rehired individuals, including both employees and independent contractors. It is essential to report these individuals within 20 days of their hire date, whether they are considered full-time, part-time, or temporary employees.Failure to report a new employee may lead to fines of up to $25 per violation.
How to report employees' and independent contractors' new hire in New Jersey?
Various reporting methods are available for you to choose from when submitting new hire information.
| Online | Fax | |
|---|---|---|
| Employees and independent contractors New Hire Report | Address Information: New Jersey New Hire Reporting Center P.O. Box 4654 Trenton, NJ 8650 Public Phone:877-654-4737 | Fax 1: 800-304-4901 |
New Jersey Personal income tax filing
New Jersey Income Tax returns align with the federal return deadline. For calendar year filers, the 2023 New Jersey returns must be filed by April 15, 2024. For fiscal year filers, returns are due by the 15th day of the fourth month after the close of the fiscal year. If a due date falls on a Saturday, Sunday, or legal holiday, the return is due on the following business day.
Residents must use Form NJ-1040 for filing their New Jersey State returns. Nonresidents or part-year residents who are required to file a New Jersey State return should use Form NJ-1040NR.
New Jersey Employers Quarterly Reporting and Payment (Form NJ-927)
Employers who fall under the regulations of the New Jersey Unemployment Compensation Law must submit an Employer's Quarterly Report for every calendar quarter.
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
Failure by an employer to file the Employer's Quarterly Report (Form NJ-927) may prompt the Division of Employer Accounts to estimate owed taxes based on available information. Subsequently, they may enforce collection of the owed taxes, along with associated penalties and interest.
Penalties for late filing of contribution reports
- $10.00 per day up to the fifth day
- After fifth day: $10.00 per day or 25% of contributions due, whichever is less Maximum penalty of $50.00 if a contribution report is filed late with no contributions due.
- Interest accrues at 1.25% per month for late payment of contributions from the due date until payment is received.
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and New Jersey state taxes for your employees and generate pay stubs securely.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
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Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.
Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of April 6, 2024.