New Jersey Payroll Tax Rates in 2015
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.
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
| 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% | |
| 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 |
