Official Site of The State of New Jersey

Employer Payroll Tax

When you are responsible for withholding New Jersey Income Tax, you are acting on behalf of the State. Not doing so can lead to consequences:

• It makes it harder for your employees or payees to meet their tax obligations.
• You might be personally responsible for any amounts you should have withheld.

If someone is your employee for federal tax purposes, they are also considered your employee for New Jersey taxes. This includes various types of pay like salaries, wages, tips, and bonuses. There are, however, benefits that are not subject to federal withholding that are subject to withholding in New Jersey.

As a New Jersey employer, you must withhold New Jersey Income Tax from:

• All New Jersey resident employees, unless they're already being taxed in another state at a higher rate.
• Nonresident employees working in New Jersey, or those who telework here for their convenience. Pennsylvania residents working in New Jersey are an exception, but they need to fill out a form Employee's Certificate of Nonresidence in New Jersey to qualify.
• If you are paying unregistered contractors in New Jersey, you must withhold 6.625% of their payment.

To figure out how much to withhold, use the tables or methods in the New Jersey Gross Income Tax Instructions for Employers (Form NJ-WT ).

All year-end filings and statements must be filed electronically, including Forms NJ-W-3, W-2, W-2G, 1099-MISC, 1099-R, 1094/1095, and more.

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