Abacus Payroll and Alloy Silverstein present a a summary of all the payroll tax changes that New Jersey employers or business owners need to know for the 2020 calendar year. Use this tool to compare the state income taxes in New Jersey and New York, or any other pair of states. New Jersey's 2021 income tax ranges from 1.4% to 10.75%. 2020 New Jersey tax brackets and rates for all four NJ filing statuses are shown in the table below. (3) Employee’s social security number There were many changes from the 2019 version that were designed to help employees comply with the recent federal Tax Cuts and Jobs Act of 2017. New Jersey new employer rate includes: 0.3825% Unemployment Compensation Fund and 0.0425% Workforce Development Fund for 2020 New Jersey State Disability Insurance (SDI) New Jersey SDI … Maximum benefit for benefit years commencing on or after January 1, 2020: $713 weekly (up from $696). The base week for 2020 will increase to $200. While the additional Medicare tax for the individual wage earner’s portion on compensation will rise to 2.35% (1.45% plus 0.9%), the employer-paid portion of the Medicare tax on these amounts remains at 1.45 %. Family Leave Insurance tax rate for employees rises to 0.16% of taxable wages, up from 0.08% in 2018. The withholding tax rates for 2015 reflect graduated rates from 1.4% to 8.97%. The TDI Taxable Wage Base for employers-only is $35,300 – a slight increase from 2019’s $34,400. Military spouses working in New Jersey are not required to have New Jersey taxes withheld from compensation paid to them for work done in the State if: • Their spouse is a member of the armed forces present in New Jersey on military orders; • They file Form NJ-165 and a copy of their spousal military identification card with theiremployer. Registering for New Jersey Payroll Tax Account Numbers New Jersey requires employers to register with the Department of Treasury, Division of Revenue and Enterprise Services. For 2020, employees are subject to a 0.0425% (.000425) Workforce Development/Supplemental Workforce Funds tax rate – the same as 2019. Effective Jan. 1, 2020 the wage base will be computed separately for employers and employees. The 8.97% tax rate applies to individuals with gross income of $500,000 per year. The maximum that can be deducted from any one employee will be $27.52 for 2019. To learn how they affect your business, click on a state to get a comprehensive overview of the key payroll regulations — including a detailed breakdown of your responsibilities for federal, state and local payroll … 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 payroll tax, we would be happy to give you a quote. File New Jersey payroll tax returns, submit wage reports, and pay withholding taxes: If you use this option, you can file forms NJ927, NJ-W-3(with W-2 and 1099) and WR30, pay withholding taxes, and view information on past filings and payments. The Affordable Care Act imposed an additional tax of 0.9% on the employee-paid portion of the Medicare FICA tax for high-wage earners. You can try it free for 30 days, with no obligation and no credt card needed. This will result in the maximum tax increasing from $215.84 to $386.96. The tax rate for existing employers for the state plan is based on each employer’s claims experience. The effective rate per hour for 2021 is $12.00 (effective 01/01/2021). FUTA stands for Federal Unemployment Tax Act. document.write('