Businesses of all types, including sole proprietorships, partnerships, corporations, and nonprofits, are responsible for withholding income based on employee wages and earnings and filing reports to the appropriate governmental agencies.
Are You An Employer?
An employer is a person or organization, including organizations for whom an individual performs a service as an employee. It includes every employer maintaining an office or transacting business within this state and making a payment of wages subject to the New Jersey Income Tax, resident or nonresident.
An employer usually provides employees a place to work and the necessary tools to perform services for which they were hired. An employer has the right to set employee work hours, assign tasks, specify the methods used to perform those tasks and fire employees.
If you meet this definition of an "employer", you as an employer must understand your wage reporting and withholding responsibilities.Your Wage Reporting and Withholding Responsibilities
Employers in the state of New Jersey are responsible for reporting wages, withholding taxes and forwarding payments on a monthly or quarterly basis. Information on the following items is required:
- Wages
- Employee Withholdings of NJ Gross Income Tax
- State Unemployment Insurance
- Workforce Development Partnership Fund
- State Disability Insurance
The state allows you to elect to report these amounts by paper, telephone or on-line. Your business has several methods for making payments as well. You may remit payments by electronic check, credit card or electronic transfer of funds.
