New Jersey Payroll Compliance
Every rate, wage base, and threshold New Jersey employers need for 2026 — sourced from the Division of Taxation and the Dept. of Labor — including the dual wage-base system that catches even experienced payroll teams off guard.
Minimum Wage & Hours
New Jersey’s minimum wage reached $15.00 in 2024 under the 2019 Fair Wage Act, then shifted to annual CPI indexing. For 2026, the rate is $15.92/hour for employers with 6 or more employees. New Jersey has no local minimum wage ordinances — the state rate is uniform, though smaller and seasonal employers use a separate, lower tier.
| Item | 2026 Value | Notes |
|---|---|---|
| Standard minimum wage | $15.92/hr | Employers with 6+ employees |
| Small/seasonal employer tier | Lower rate applies | Fewer than 6 employees or seasonal classification — confirm exact figure via NJDOL |
| Agricultural workers | Separate lower tier | Distinct statutory schedule — confirm current figure via NJDOL |
| Overtime rule | 1.5× after 40 hrs/wk | Federal FLSA; no separate state daily overtime |
| Local wage ordinances | None | No NJ municipality sets its own minimum wage |
| Statute | NJ Fair Wage Act (2019) | Reached $15.00 in 2024; CPI-indexed annually since |
State Income Tax Withholding
New Jersey uses a graduated income tax with rates from 1.4% to 10.75%. The top rate applies to taxable income above $1,000,000 for single filers ($2,000,000 for joint filers). New Jersey has no standard deduction — withholding runs entirely on a per-exemption allowance system.
| Item | 2026 Value | Notes |
|---|---|---|
| Bracket range | 1.4% – 10.75% | 7 brackets (single) / 8 brackets (joint) |
| Top rate threshold | $1M single / $2M joint | 10.75% applies only above these thresholds |
| Exemption allowance | $1,000 per exemption | No standard deduction exists in NJ |
| Required certificate | Form NJ-W4 | Uses a total exemption count, not federal-style allowances |
| Withholding tables | NJ-WT | Wage-bracket and percentage method published by Division of Taxation |
| Reciprocity | Pennsylvania only | PA residents file Form NJ-165 to exempt NJ income tax withholding |
| HSA treatment | Taxable in NJ | Unlike federal rules, NJ does not treat HSA contributions as pre-tax |
| Local income tax | None (employee-facing) | Newark/Jersey City impose employer-side payroll taxes, not employee withholding |
Temporary Disability & Family Leave Insurance (TDI/FLI)
New Jersey runs two employee-funded programs — TDI for the employee’s own non-work illness or injury, and FLI for family caregiving and bonding — both administered separately from unemployment insurance, and both capped at a different, much higher wage base than UI.
| Item | 2026 Value | Notes |
|---|---|---|
| TDI employee rate | 0.19% | Max employee contribution: $325.09/year |
| FLI employee rate | 0.23% | Max employee contribution: $393.53/year |
| TDI/FLI taxable wage base | $171,100 | Separate from — and much higher than — the UI/WF wage base |
| Max TDI weekly benefit | $1,119 | 85% of average weekly wage, up to this cap |
| Base week (2026) | $310 | Minimum weekly earnings to count toward benefit eligibility |
| Alternative earnings test | $15,500 | Alternate qualification threshold for UI and TDI |
Unemployment Insurance (SUI)
New Jersey is one of the few states requiring both employer and employee contributions to unemployment insurance. New employers pay a flat 2.8% combined rate (base UI + Workforce Development/Supplemental Workforce Funds) for their first three calendar years before moving to experience rating.
| Item | 2026 Value | Notes |
|---|---|---|
| New employer rate | 2.8% | Combined UI + WF/SWF; applies for the first 3 years |
| Experience-rated employers | Table C (FY26) | Rate schedule set annually July–June by trust fund solvency |
| UI/WF/SWF wage base | $44,800 | Employer and employee both contribute up to this cap |
| Employee UI/WF/SWF rate | 0.425% | Max employee contribution: $190.40/year |
| Max UI weekly benefit | $905 | 2026 figure per NJ Division of Employer Accounts |
Employer Registration & Filing
New Jersey splits payroll administration across two separate state agencies with independent portals, deadlines, and penalty structures — a real source of the complexity NJ employers report relative to neighboring states.
| Item | Value | Notes |
|---|---|---|
| Registration form | Form NJ-REG | Single form covers withholding, UI, TDI, FLI, and sales tax |
| Registration threshold | $1,000+ in NJ wages | Triggers liability within the calendar year |
| Withholding return | Form NJ-927 | Due the 30th of the month following each quarter (not the 31st) |
| Wage report | Form WR-30 | Filed with the Dept. of Labor, separate from NJ-927 |
| Record retention | 6 years minimum | Hours, wages, deductions, NJ-W4s, and filing copies |
| EFT threshold | $10,000+ liability | Mandatory electronic payment above this threshold, any tax type |
| Worker classification test | ABC test | Among the strictest in the country — failing any one prong means employee status |
Official New Jersey .gov Resources
Verify every figure and register for accounts at the source. New Jersey requires coordination across two separate departments for a single payroll run.