Ó£»¨ÊÓƵ

Employer Payroll Tax

When you are responsible for withholding Ó£»¨ÊÓƵ 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 Ó£»¨ÊÓƵ 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 Ó£»¨ÊÓƵ.

As a Ó£»¨ÊÓƵ employer, you must withhold Ó£»¨ÊÓƵ Income Tax from:

• All Ó£»¨ÊÓƵ resident employees, unless they're already being taxed in another state at a higher rate.
• Nonresident employees working in Ó£»¨ÊÓƵ, or those who telework here for their convenience. Pennsylvania residents working in Ó£»¨ÊÓƵ are an exception, but they need to fill out a form Employee's Certificate of Nonresidence in Ó£»¨ÊÓƵ to qualify.
• If you are paying unregistered unincorporated contractors in Ó£»¨ÊÓƵ, you must withhold 7% of their payment.

To figure out how much to withhold, use the tables or methods in the Ó£»¨ÊÓƵ 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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