New Jersey Payroll Instructions

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New Jersey has state income tax withholding. Withholding tax rates have not changed in 2017 (they've only changed in 7 of the past 27 years). The withholding amounts are calculated with 'step' tax tables that are similar to the federal payroll withholding tables.

All New Jersey state tax packages also include the following state taxes:

  • New Jersey Disability Insurance (paid by employers and employees)
  • Workforce Development Tax (paid by employers and employees)
  • Health Care subsidy (paid by employers)
  • SUTA contribution (paid by employers and employees)

HINT-- Turtle Creek Software provides free annual updates for US federal and New Jersey tax withholding rates.

New Jersey State Withholding Instructions

To enter New Jersey withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of New Jersey dependents into the State Exemptions field.
  7. Enter the New Jersey Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  8. Click OK.

New Jersey State Unemployment Tax Instructions

In 2017, New Jersey state unemployment insurance tax is based on the first $33,500 of wages (up slightly from the $32,600 cutoff used the previous year). The starting rate for a new employer is currently 2.8%.

Unlike most states, there is also an employee SUTA contribution of .43%, plus a workforce charge of .12%, resulting in a net employee charge of .55%.

After the first year, the rate is different for each employer, depending on past layoff history.

To enter your New Jersey SUTA tax rate into the Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate your state's SUTA tax in the list, and double-click on it. HINT: If you don't see New Jersey SUTA in the list, you'll need to import your state's payroll info first.
  3. Get the SUTA percentage rate for your business, and type it into the percentage field to the right of Calculation method.
  4. If the SUTA cutoff amount has changed, enter it into the field to the right of First Adjustment.

Other New Jersey Taxes

New Jersey employers and employees both pay .5% for disability insurance (DI). There is also a family leave insurance tax (FLI) of .12% on employees.

In some past years there was a Health Care subsidy charge of .2%, but starting in 2009, this employer tax is not in effect. We still list it as a Tax Item in case it returns some day, but currently the cost is 0%.


New Jersey Marital Status

Enter one of the following choices into the Marital Status popup field in each employee's account record:

  • Single- single employee (A rate)
  • Married- married filing jointly (B rate)
  • Dual Income- married filing separately (A rate)
  • Head of House- unmarried head of household (B rate)
  • Other- not used

If an employee chooses to withhold at the C, D or E rate (from line 3 of the NJ-W4 form), enter the matching tax package for them into the Tax Package field in the Employee account. In these cases, the Marital Status applies to the Federal taxes only. Otherwise use the regular state Tax Package.


New Jersey Tax Contacts

Withholding tax website

Payroll Tax Office-- 609 292-2121
SUTA-- 609 757-2864

New Jersey Division of Taxation
CN 269 W State & Willow Sts
Trenton NJ 08646-0269


Official State Lawn Ornament

Toll booth.