USA State Payroll Rates + Resources: State of New Jersey: Filing State Income Taxes, W2s, and 1099s

Purpose

This documentation outlines the processes and requirements associated with filing state income taxes as well as how to file W-2s and 1099s, if needed, in the state of New Jersey.

State Income Tax Withholding

Employees should complete an Employee’s Withholding Allowance Certificate (Form NJ-W4) and give it to their employer to declare withholding information for New Jersey purposes.

New Jersey employers must furnish Form NJ-W4 to their employees and withhold New Jersey Income Tax at the rate selected.

An employee only needs to complete Form NJ-W4 once. An employee completes a new form only when they want to revise their withholding information. However, any employee who claims to be exempt from New Jersey withholding, because their income is below the minimum filing threshold, must submit a new form every year.

Employers should keep all federal W-4s and NJ-W4s with their payroll records and make them available to the Division on request.

State Income Tax Withholding Reporting & Payments

Reporting

Anyone withholding New Jersey Income Tax is required to file the Employer's Quarterly Report (Form NJ-927 or NJ-927-W). How often you make payments depends on the amount of tax you collect per month and/or the amount of tax you collected in the prior year.

You must file and remit your withholdings through the New Jersey Department of Taxation.

All employers must file a quarterly return Form NJ-927, even if there was no tax withheld for the quarter. If the due date falls on a weekend or holiday, Form NJ-927 is due the next business day.

Payments

Frequency:	Amount of withholding tax collected:	Due Date:
Quarterly	Less than $500 for the first and/or second months of the quarter.	30th day of the month following the end of the quarter (along with the quarterly report).
Monthly	More than $500 for the first and/or second months of the quarter (using Form NJ-500). Note: The third month of the quarter is always paid with the quarterly return.	15th day of the month following the month it was collected.
Weekly	Prior year liability of $10,000 or more of Income Tax withheld.	Payment due date based on the frequency of your pay period. Weekly payers do not necessarily make the payment each week (ie. if you have a bi-weekly payroll, you would pay bi-weekly. If you have a monthly payroll, you would pay monthly).

W-2 and 1099 Forms

Anyone withholding New Jersey Income Tax must file a year-end reconciliation (Form NJ-W-3) on or before the last day in February of the following year.

You must file Form NJ-W-3 along with copies of all supporting documents (W-2, 1099-R, 1099-MISC, W-2G, etc.) showing New Jersey withholdings.

You may also need to include the following:

Schedule NJ-W3-G (if appropriate);
Schedule NJ-W-3-UNC (if appropriate);
The total listing of amounts withheld from all supporting documents.

You may file Form NJ-W-3 and copies of your employee's W-2s electronically. The NJ-EFW2 Booklet explains the requirements for electronic filing.

If you do not meet the requirements for electronic filing, then you must mail copies of all supporting documents with Form NJ-W-3 to:

     State of New Jersey
     GIT Division of Taxation Revenue Processing Center
     PO Box 333
     Trenton, NJ 08646-0333

For further details, see New Jersey Income Tax Withholding Instructions.