New Jersey Payroll Tax Rates for 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.
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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 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.
View our End-of-Year Payroll Checklist
