Payroll New Jersey, Unique Aspects of New Jersey Payroll Law and Practice

The New Jersey State Agency that oversees themedia. The information can be sent as a W4 or
collection and reporting of State income taxesequivalent by mail, fax or electronically. There is a
deducted from payroll checks is:$25.00 penalty for a late report and $500 for
Department of the Treasuryconspiracy in New Jersey.
Division of RevenueThe New Jersey new hire-reporting agency can
50 Barrack St. CN 248be reached at 888-624-6339, 877-654-4737, or
Trenton, NJ 08648-0248609-689-1900 or on the web at
(609) 292-6400New Jersey does not allow compulsory direct
(800) 323-4400 (in state)deposit
New Jersey allows you to use the Federal W-4New Jersey requires the following information on
form to calculate state income tax withholding oran employee's pay stub:statement of total wages
the New Jersey form "NJ-W4 Employee'sand deductions
Withholding Allowance Certificate".New Jersey requires that employee be paid no
Not all states allow salary reductions made underless often than semimonthly; monthly for exempt
Section 125 cafeteria plans or 401(k) to beemployees.
treated in the same manner as the IRS codeNew Jersey requires that the lag time between
allows. In New Jersey cafeteria plans are taxablethe end of the pay period and the payment of
for income tax calculation; taxable forwages to the employee not exceed ten days.
unemployment insurance purposes. 401(k) planNew Jersey payroll law requires that involuntarily
deferrals are not taxable for income taxes;terminated employees must be paid their final pay
taxable for unemployment purposes.by their next regular payday (by mail at
In New Jersey supplemental wages are requiredemployee's request) and that voluntarily
to be aggregated for the state income taxterminated employees must be paid their final pay
withholding calculation.by the next regular payday or by mail if
You may file your New Jersey State W-2s byemployee requests it.
magnetic media if you choose to.Deceased employee's wages must be paid when
The New Jersey State Unemployment Insurancenormally due to the surviving spouse, children 18
Agency is:or over, guardian of minor children, parents,
Unemployment and Disability Insurancesiblings, or person paying funeral expenses (in that
John Fitch Plazaorder).
P.O. Box 912Escheat laws in New Jersey require that unclaimed
Trenton, NJ 08646wages be paid over to the state after one year.
(609) 633-6400The employer is further required in New Jersey
The State of New Jersey taxable wage base forto keep a record of the wages abandoned and
unemployment purposes is wages up toturned over to the state for a period of 5 years.
$24,300.00.New Jersey payroll law mandates no more than
New Jersey requires Magnetic media reporting of40% (less for some workers) of minimum wage
quarterly wage reporting if the employer has atmay be used as a tip credit.
least 100 employees that they are reporting thatIn the New Jersey payroll law there is no
quarter.provision covering required rest or meal periods.
Unemployment records must be retained in NewNew Jersey statute requires that wage and hour
Jersey for a minimum period of five years. Thisrecords be kept for a period of not less than one
information generally includes: name; social securityyear. These records will normally consist of at
number; dates of hire, rehire and termination;least the information required under FLSA.
wages by period; payroll pay periods and payThe New Jersey agency charged with enforcing
dates; date and circumstances of termination.Child Support Orders and laws is:
The New Jersey State Agency charged withDepartment of Human Services
enforcing the state wage and hour laws is:Division of Economic Assistance
Department of LaborOffice of Child Support and Paternity Programs
Division of Labor Standards and SafetyState Services
EnforcementBox CN 716
Office of Wage and Hour ComplianceTrenton, NJ 08625
225 E. State St.(877) 655-4371
P.O. Box 389New Jersey has the following provisions for child
Trenton, NJ 08625-0389support deductions:
(609) 292-7860- When to start Withholding? First pay period
The minimum wage in New Jersey is $5.15 perending after postmark date.
hour.- When to send Payment? Payday
The general provision in New Jersey concerning- When to send Termination Notice? "Promptly"
paying overtime in a non-FLSA covered employer- Maximum Administrative Fee? $1 per payment.
is one and one half times regular rate after- Withholding Limits? Federal Rules under CCPA.
40-hour week.Please note that this article is not updated for
New Jersey State new hire reportingchanges that can and will happen from time to
requirements are that every employer musttime.
report every new hire and rehire. The employerCharles J. Read, CPA has been in the payroll,
must report the federally required elements of:accounting and tax business for 30 years,the last
- Employee's namefifteen in private practice. Mr. Read is the author
- Employee's date of birthof "Tax and Accounting Issuesin Forming a New
- Employee's addressBusiness."
- Employee's social security numberTo find professional payroll services at a budget
- Employer's nameprice go to paperless payroll company.
- Employers addressFor a full service payroll bureau with CPA's on
- Employer's Federal Employer Identificationstaff visit .
Number (EIN)See an excerpt of Mr. Read's interviews from
This information must be reported within 20 daysWilliam Shatner's "Heartbeat of America"television
of the hiring or rehiring; every 15 days on magshow on the web sites linked above.