Abacus Payroll and Alloy Silverstein present a summary of all the payroll tax changes that New Jersey employers or business owners need to know for the 2022 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 the 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.
New Jersey Minimum Wage
The effective rate per hour for 2022 is $13.00 (effective 01/01/2021). Click to read more on New Jersey’s minimum wage increase.
New Jersey Gross Income Tax
The withholding tax rates for 2022 reflect graduated rates from 1.5% to 11.8%. The 11.8% tax rate applies to individuals with taxable income over $1,000,000.
New Jersey Unemployment Tax
The wage base is computed separately for employers and employees. For employers for 2021, the wage base increases to $36,200 for unemployment insurance, disability insurance, and workforce development. Employee’s unemployment and workforce development wage base increase to $36,200, maximum withholding $153.85. However employee’s disability insurance and family leave insurance wage base increases to $138,200, maximum withholding $1,036.50. The base week for 2021 will increase to $220.
|Jan 1 – Dec 31, 2021||Employee % breakdown|
|Family leave insurance||0.1400%|
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 took effect October 29, 2018. Please contact us for the specifics regarding this law.
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 if you have any questions or need help completing a Business Enrollment Application, which can be obtained online or by calling 1-800-555-4477 (Federal) or 609-292-9292 (NJ).
New Jersey Filing of Form W-2 and 1099
Beginning with tax year 2020, you must submit Form NJ-W-3 and all W-2, W-2-G, 1099s, and 1094/1095s electronically.
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 at www.njcsesp.com. Failure to report a new employee could result in a fine up to $25 per violation.
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).
2022 Wage Tax Rate Summary for New Jersey
View more rates on our Federal Payroll Tax Update page.
2022 Current Year
2021 Prior Year
|Minimum Wage||$13.00 (1/1/2022)||$12.00 (1/1/2021)|
|Maximum taxable earnings||$39,800||$36,200|
|Maximum taxable earnings- Employer||$39,800||$36,200|
|Maximum taxable earnings- Employee||$151,900||$138,200|
|Paid family leave insurance|
|Maximum taxable earnings||$151,900||$138,200|