2022 New Jersey Payroll Tax Rates

Abacus Payroll presents a summary of all the payroll tax changes that New Jersey employers or business owners need to know for the 2022 calendar year.

New Jersey Minimum Wage

The effective rate per hour for 2022 is $13.00 (effective 01/01/2021).

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, 2022	Employee % breakdown
Unemployment insurance	0.3825%
Disability insurance	0.1400%
Family leave insurance	0.1400%
Workforce development	0.0425%
Total	0.705%

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.

2022 Wage Tax Rate Summary for New Jersey

	2022 Current Year	2021 Prior Year
Minimum Wage	$13.00 (1/1/2022)	$12.00 (1/1/2021)
Unemployment
Maximum taxable earnings	$39,800	$36,200
Employee deduction	0.425%	0.425%
Disability
Maximum taxable earnings- Employer	$39,800	$36,200
Maximum taxable earnings- Employee	$151,900	$138,200
Employee deduction	0.14%	0.47%
Paid family leave insurance
Maximum taxable earnings	$151,900	$138,200
Employee deduction	0.14%	0.28%
Employer Deduction	None	None

View more rates on our 2023 Federal Payroll Tax Updates page.