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Employer Payroll Tax

When you are responsible for withholding ³Ô¹ÏºÚÁÏ 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 ³Ô¹ÏºÚÁÏ 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 ³Ô¹ÏºÚÁÏ.

As a ³Ô¹ÏºÚÁÏ employer, you must withhold ³Ô¹ÏºÚÁÏ Income Tax from:

• All ³Ô¹ÏºÚÁÏ resident employees, unless they're already being taxed in another state at a higher rate.
• Nonresident employees working in ³Ô¹ÏºÚÁÏ, or those who telework here for their convenience. Pennsylvania residents working in ³Ô¹ÏºÚÁÏ are an exception, but they need to fill out a form Employee's Certificate of Nonresidence in ³Ô¹ÏºÚÁÏ to qualify.
• If you are paying unregistered unincorporated contractors in ³Ô¹ÏºÚÁÏ, you must withhold 7% of their payment.

To figure out how much to withhold, use the tables or methods in the ³Ô¹ÏºÚÁÏ 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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