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New Jersey Payroll Tax Rates in 2014

May 28, 2014 | posted by Abacus Payroll

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 2014. 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 2014 is $8.25 (effective 01/01/14)

New Jersey Gross Income Tax

The withholding tax rates for 2014 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.


New Jersey Unemployment Tax

The wage base increases to $31,500 for 2014. The employee withholding rate will increase to 0.905%. The maximum unemployment tax withheld from wages will be $258.08. The base week for 2014 will remain at $145.00.


Jan 1
through Dec 31, 2014
Employee % breakdown $


Unemployment insurance 0.3825% = $120.49
Disability insurance 0.3800%

= $119.70
Family leave insurance 0.1000%

= $31.50
Workforce development 0.0425%

= $13.39
Total 0.905% $285.08


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, 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 Enrolment Application.


2014 Wage Tax Rate Summary for New Jersey

Current Year
Prior Year

Minimum Wage $8.25 $7.25


Maximum taxable earnings $31,500 $30,900
Employee deduction 0.425% 0.425%


Maximum taxable earnings $31,500 $30,900
Employee deduction 0.38% 0.36%

Paid family leave insurance

Maximum taxable earnings $31,500 $30,900
Employee deduction 0.1% 0.31
Employer deduction None None



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.