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New Jersey Payroll Tax Rates in 2015

December 12, 2014 | posted by Abacus Payroll

Note: New Jersey’s 2016 rates have now been posted!

 

If you’re a small business in New Jersey, then here is a summary of all the payroll tax changes that you need to know about in 2015. 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 2015 is $8.38 (effective 01/01/15)

 
New Jersey Gross Income Tax

The withholding tax rates for 2015 reflect graduated rates from 1.4% to 8.97%. The 8.97% tax rate applies to individuals with gross income of $500,000 per year.

 

FREE Paycheck and Tax Calculators

 

New Jersey Unemployment Tax

The wage base increases to $32,000 for 2015. The employee withholding rate will decrease to 0.765%. The maximum unemployment tax withheld from wages will be $244.80 (SUI – $164.80, SDI – $80.00). The base week for 2015 will increase to $165.00.

 

Jan 1
through Dec 31, 2015
Employee % breakdown

 

Unemployment insurance 0.3825%
Disability insurance 0.2500%
Family leave insurance 0.0900%
Workforce development 0.0425%
Total 0.765%

 

Top 5 Small Business Tax Deductions

 

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 thereafter. Business taxpayers required to use EFT, but failing to do so, may be subject to severe penalties.

Please contact us is you have any questions or need assistance in completing a Business Enrollment Application.

 

New Hire Reporting Requirements

 

All employers in New Jersey are required to report basic information about employees who are newly hired, re-hired, who return to work after separation of employment, or who are returning from a required leave of absence without pay greater than 30 days. Employers can report this information 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.

 

2015 Wage Tax Rate Summary for New Jersey
 

 
2015
Current Year
2014
Prior Year


Minimum Wage $8.38 $8.25


Unemployment


Maximum taxable earnings $32,000 $31,500
Employee deduction 0.425% 0.425%


Disability


Maximum taxable earnings $32,000 $31,500
Employee deduction 0.25% 0.38%


Paid family leave insurance


Maximum taxable earnings $32,000 $31,500
Employee deduction 0.09% 0.1%
Employer deduction None None

 

Print 2015 Payroll Tax alert

 


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.