2023 New Jersey Payroll Tax Rates
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 2023 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.
Print Full 2023 Payroll Tax Alert [PDF]
New Jersey Minimum Wage
The effective rate per hour for 2023 is $14.13 (effective 01/01/2023). Click to read more on New Jersey’s minimum wage increase.
New Jersey Gross Income Tax
The withholding tax rates for 2023 reflect graduated rates from 1.5% to 11.8%. The 11.8% tax rate applies to individuals with taxable income over $1,000,000.
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New Jersey Unemployment Tax
The wage base is computed separately for employers and employees. For employers for 2023, the wage base increases to $41,100 for unemployment insurance, disability insurance and workforce development. Employee’s unemployment and workforce development wage base increase to $41,100, maximum withholding $174.68. However, employee’s disability insurance and family leave wage base increases to $156,800, maximum withholding $94.08. The base week for 2023 will increase to $260.
| Jan 1 – Dec 31, 2023 | Employee % breakdown |
| Unemployment insurance | 0.3825% |
| Disability insurance | 0.0000% |
| Family leave insurance | 0.0600% |
| Workforce development | 0.0425% |
| Total | 0.4850% |
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. Please contact us for the specifics regarding this law.
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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 questions or need assistance completing applications.
New Jersey Filing of Form W-2 and 1099
Form NJ-W-3 and all W-2, W-2-G, 1099s, and 1094/1095s must be submitted 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).
2023 Wage Tax Rate Summary for New Jersey
View more rates on our Federal Payroll Tax Updates page.
Print Full 2023 Payroll Tax Alert [PDF]
|
2023 Current Year |
2022 Prior Year |
|
| Minimum Wage | $14.13 (1/1/2023) | $13.00 (1/1/2022) |
| Unemployment | ||
| Maximum taxable earnings | $41,100 | $39,800 |
| Employee deduction | 0.425% | 0.425% |
| Disability | ||
| Maximum taxable earnings- Employer | $41,100 | $39,800 |
| Maximum taxable earnings- Employee | $156,800 | $151,900 |
| Employee deduction | 0.00% | 0.14% |
| Paid family leave insurance | ||
| Maximum taxable earnings | $156,800 | $151,900 |
| Employee deduction | 0.06% | 0.14% |
