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2019 New Jersey Payroll Tax Rates

December 21, 2018 | posted by Abacus Payroll

Abacus Payroll and Alloy Silverstein present a a summary of all the payroll tax changes that New Jersey employers or business owners need to know for the 2019 calendar year.

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 payroll tax, we would 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.

Print Full 2019 Payroll Tax Alert [PDF]


 

New Jersey Minimum wage

The effective rate per hour for 2019 is $8.85 (effective 01/01/19).

The new effective rate per hour for 2019 is $10.00 (effective 07/01/19). Click to read more on New Jersey’s minimum wage increase. 

 

New Jersey Gross Income Tax

The withholding tax rates for 2019 reflect graduated rates from 1.5% to 11.8%. The 11.8% tax rate applies to individuals with taxable income over $5,000,000.

 

FREE Paycheck and Tax Calculators

 

New Jersey Unemployment Tax

The wage base increases to $34,400 for 2019. The employee withholding rate will decrease to 0.675%. The maximum unemployment tax withheld from wages will be $232.20 (SUI- $173.72, SDI $58.48). The base week for 2019 will increase to $172.

Jan 1 – Dec 31, 2019 Employee % breakdown
Unemployment insurance 0.3825%
Disability insurance 0.1700%
Family leave insurance 0.0800%
Workforce development 0.0425%
Total 0.675%

 

New Jersey Paid Sick Leave

New Jersey’s earned sick leave affects almost every NJ employer. Law states for every 30 hours worked, 1 hour of sick time is earned up to a maximum of 40 hours per year effective October 29, 2018. Please contact us for the specifics regarding this new law.

 
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 and
(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).

 

2019 Wage Tax Rate Summary for New Jersey

View more rates on our Federal Payroll Tax Update page.

Print Full 2019 Payroll Tax Alert [PDF]

 

   

2019 Current Year

 

2018 Prior Year

Minimum Wage $8.85  (1/1/2019)
$10.00 (7/1/2019)
$8.60
Unemployment
Maximum taxable earnings $34,400 $33,700
Employee deduction 0.425% 0.425%
Disability
Maximum taxable earnings $34,400 $33,700
Employee deduction 0.17% 0.19%
Paid family leave insurance
Maximum taxable earnings $34,400 $33,700
Employee deduction 0.08% 0.09%
Employer deduction None None
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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.