New Jersey New Employer Information
Congratulations on your decision to become a new employer in New Jersey! You will need a few things in place before you run your first payroll.
For help registering your business in New Jersey, check out our partner, CorpNet.
Federal and State Tax Accounts
Federal Tax Accounts:
- Although it is not required, we recommend that you register for this federal tax paying system. Your EFTPS (Electronic Federal Tax Payment System) account will be helpful for you to make tax payments online or view whatever tax filings that have been made on your behalf by Patriot.
- To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of New Jersey Tax Accounts
- You can register online at the New Jersey Online Business Filing and Registration Service.
- Using this registration will allow you to file for state income taxes (SIT), employer unemployment insurance (SUI) and employer disability insurance (SDI).
- The New Jersey new employer SUTA rate is 2.9825% for July 1, 2024 through June 30, 2025.
- For your information, there is also an employer Workforce Development/Supplemental Workforce Fund rate of 0.1175% for UI, Workforce Development/Supplemental funds. However, as a Patriot customer, you do not need to enter this in your tax account settings, as they are automatically calculated for you. To learn more about new employer rates, visit the NJ Department of Labor and Workforce Development.
- There is also a “worker rate” which employees in New Jersey pay as a contribution to the UI and Workforce Development/Supplemental Workforce fund which does not need to be entered in the software. This is automatically calculated.
- All New Jersey new employers (except successors) are assigned new employer rates for the first three calendar years after which a calculated rate is assigned based on employment experience.
- To learn more about SUTA read our article, “What Is SUTA Tax?”
- New employers in New Jersey will use an SDI (aka TDI) rate of 0.5% from July 1, 2024 through June 30, 2025.
- For your information, there is typically a worker contribution rate for disability also. However, the 2024 worker disability insurance rate is 0.0%. And as a Patriot customer, you do not need to enter in worker disability insurance, as it is calculated automatically for you. To learn more about the NJ Disability insurance rates, visit the NJ Department of Labor and Workforce Development.
- You will then receive an experience rating for each subsequent year you are in business.
- For more information, read, “What Is State Disability Insurance?”
State-mandated Requirements:
- You must have workers’ comp insurance if you have at least 1 employee in New Jersey. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in New Jersey here.
- Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.
- New Jersey requires most employers to have Disability Insurance.
- Insurance policies can be obtained through the state (via a payroll tax from employee wages) or a private insurance plan. Visit the state’s website for more information.
- New Jersey requires that employers with 25 or more employees who have been in business for at least two years must enroll in New Jersey’s Secure Choice Savings Plan or offer another retirement plan.
- Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.
Setting Up Your New Employee:
- Form NJ W-4 is the New Jersey employee withholding allowance certificate for state income taxes (SIT).
- New Jersey employers need to report new hires within 20 days of hire or rehire.
- You can report online through the New Jersey New Hire Directory.
- New Jersey employers with six or more employees must pay employees a minimum wage of $15.13 per hour for 2024. Seasonal and small employers with fewer than six employees must pay $13.73 per hour for 2024.
- By law you are required to post the minimum wage poster where your employees can read it.
Once you have all the necessary information, you can set up your business payroll.
You will want to keep all payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Check with federal and state governments for additional requirements for employers.
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