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New Jersey Payroll Tax Rates for 2017

December 13, 2016 | posted by Abacus Payroll
New Jersey payroll tax rates 2017

Abacus Payroll presents a a summary of all the payroll tax changes that New Jersey employers or business owners need to know for 2017. We keep this page updated, but if you’d like to be alerted to more changes to New Jersey Payroll Tax rates in future, you can subscribe to our Payroll Tax Alert Service

If you’d like help with your payroll tax, we’d be happy to give you a quote. You’ll be assigned your very own payroll tax expert and our prices start at $4 per employee per month.


New Jersey Minimum wage

The effective rate per hour for 2017 is $8.44 (effective 01/01/17)

 
New Jersey Gross Income Tax

The withholding tax rates for 2017 reflect graduated rates from 1.4% to 8.97%. The 8.97% tax rate applies to individuals with taxable income over $500,000.

 

FREE Paycheck and Tax Calculators

 

New Jersey Unemployment Tax

The wage base increases to $33,500 for 2017. The employee withholding rate will increase to 0.765%. The maximum unemployment tax withheld from wages will be $256.27 (SUI- $175.87, SDI $80.40). The base week for 2017 will remain at $168.00.

 

Jan 1
through Dec 31, 2017
Employee % breakdown

 

Unemployment insurance 0.3825%
Disability insurance 0.2400%
Family leave insurance 0.1000%
Workforce development 0.0425%
Total 0.765%

 

 

New From Abacus Payroll: An HR Help Center


 

New Jersey Electronic Funds Transfer Program (EFT)

New Jersey taxpayers with a prior year tax liability of $10,000 or more are required to make tax payments by EFT. Once the taxpayer is required to make EFT deposits applying the threshold, all future payroll and business tax deposits must be made through EFT, regardless if the threshold is met each year after. Business taxpayers required to use EFT, and failing to do so, may be subject to severe penalties.

Please contact us is you have any questions or need help completing a Business Enrollment Application. You may also call 1-800-555-3453 (Federal) or 609-984-9830 (New Jersey) for assistance.

 

New Hire Reporting Requirements

 

All employers in the states of New Jersey and Pennsylvania are required to report basic information about employees who are newly hired, rehired and returning to work after separation of employment or leave of absence, temporary employees, and contracted entities. Employers must report this information within 20 days via the internet at www.nj-newhire.com. Failure to report a new employee could result in a fine up to $25 per violation. New employers should receive instruction booklets upon registration with the state. Basic employee information which must be provided:

 

(1)   Employee’s name

(2)   Employee’s address

(3)   Employee’s social security number

(4)   Employee’s date of hire and birth

(5)   Employer’s name and address

(6)   Employer’s federal identification number

 

For further information contact us or call the State of New Jersey at 1-877-654-4737 (1-877-NJ HIRES).

 

2017 Wage Tax Rate Summary for New Jersey
 

 
2017 Current Year
2016
Prior Year


Minimum Wage $8.44 $8.38


Unemployment


Maximum taxable earnings $33,500 $32,000
Employee deduction 0.425% 0.425%


Disability


Maximum taxable earnings $33,500 $32,000
Employee deduction 0.24% 0.20%


Paid family leave insurance


Maximum taxable earnings $33,500 $32,000
Employee deduction 0.10% 0.08%
Employer deduction None None

 
 
View more rates on our Federal Payroll Tax Update page.
 

Print 2017 Payroll Tax alert

 
 


View our End-of-Year Payroll Checklist


 


About the Author: Abacus Payroll

Abacus Payroll, Inc. is a leading provider of payroll solutions for businesses of all sizes. Whether yours is a family-owned small business or a national corporation, we provide payroll, tax and other financial services on time and at an affordable price.

Unlike other payroll providers, Abacus Payroll will assign your very own payroll specialist who will understand your payroll needs inside and out. So no more speaking to a different person each time, no more sitting on hold for hours and most importantly no more missed deadlines!

Contact us today to see how we can help your business. You can count on us.