New Jersey Payroll Tax Rates in 2014
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
| |
2014 Current Year |
2013 Prior Year |
| | ||
| Minimum Wage | $8.25 | $7.25 |
| | ||
| Unemployment | | |
| Maximum taxable earnings | $31,500 | $30,900 |
| Employee deduction | 0.425% | 0.425% |
| | ||
| Disability | | |
| 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 |
