New Jersey employers must handle several payroll tax obligations: graduated 1.4%–10.75% state income tax withholding, SUI contributions (0.40%–5.40% on the first $42,300 per employee), plus all federal payroll taxes (FICA at 7.65%, FUTA at 0.6% on the first $7,000). New employers pay an SUI rate of 2.8%.
Table of Contents
Overview: New Jersey Payroll Tax Landscape
Running payroll in New Jersey means managing both state and federal tax obligations. Here is the complete picture of what New Jersey employers owe:
| Tax | Who Pays | Rate | Wage Base |
|---|---|---|---|
| New Jersey Income Tax | Employee (employer withholds) | graduated 1.4%–10.75% | All wages |
| New Jersey SUI | Employer | 0.40%–5.40% | $42,300 |
| Social Security (FICA) | Split 50/50 | 6.2% each | $176,100 |
| Medicare (FICA) | Split 50/50 | 1.45% each | No limit |
| FUTA | Employer | 0.6% (after credit) | $7,000 |
State Income Tax: graduated 1.4%–10.75%
New Jersey has a progressive income tax with seven brackets ranging from 1.4% to 10.75%. The top rate applies to income over $1 million, making it one of the highest state tax rates nationally.
As an employer, you are responsible for withholding New Jersey state income tax from every employee’s paycheck based on the withholding tables published by the New Jersey Division of Taxation. You must remit these withholdings on the schedule assigned by the state — typically monthly or quarterly depending on your total tax liability.
For details, visit the New Jersey Division of Taxation website.
💼 From the Payroll Desk
New Jersey has more payroll taxes than almost any other state: SUI, SDI, FLI, WF/SWF — each with its own rate and wage base. The most common mistake is missing one of these deductions entirely. Make sure your payroll system handles all four employee-side deductions.
State Unemployment Insurance (SUI)
New Jersey SUI is an employer-paid tax on the first $42,300 of each employee’s wages per year. New employers pay 2.8%. Experienced employers are rated between 0.40%–5.40% based on their claims history.
SUI is administered by the New Jersey Department of Labor and Workforce Development. You must register for an SUI account when you hire your first employee and file quarterly wage reports.
For a detailed breakdown, see our New Jersey SUI Rates 2026 guide.
Federal Payroll Taxes
On top of New Jersey state obligations, every employer must handle federal payroll taxes:
- FICA (Social Security + Medicare): 7.65% employer share, 7.65% employee share. Social Security applies to the first $176,100; Medicare has no cap.
- FUTA: 0.6% employer-only tax on the first $7,000 per employee (after state SUI credit).
- Federal Income Tax Withholding: Based on employee W-4 and IRS tables. Employer withholds but does not pay.
For a complete breakdown, see our Federal Payroll Tax Basics guide.
Filing Schedules and Deadlines
Key deadlines for New Jersey employers:
- Federal 941: Quarterly — due by the last day of the month after each quarter
- Federal 940 (FUTA): Annual — due January 31
- New Jersey SUI: Quarterly wage reports — due by the last day of the month after each quarter
- New Jersey Income Tax Withholding: Monthly or quarterly, based on your liability
- W-2s: Due to employees by January 31, filed with SSA by January 31
Penalties for Late Filing and Payment
Late or missed payroll tax payments result in penalties at both the federal and state level:
- IRS: Failure-to-deposit penalties range from 2% to 15% depending on how late
- New Jersey: State penalties vary but typically include interest on unpaid balances plus fixed or percentage-based penalty fees
- Trust fund penalty: The IRS can hold business owners personally liable for unpaid withholding taxes (the “Trust Fund Recovery Penalty”)
Frequently Asked Questions
What payroll taxes do New Jersey employers pay?
New Jersey employers pay federal payroll taxes (FICA, FUTA) and state unemployment insurance (SUI) on the first $42,300 of wages per employee. Employers also withhold New Jersey state income tax (graduated 1.4%–10.75%) from employee paychecks.
What is the New Jersey SUI wage base for 2026?
The New Jersey SUI wage base for 2026 is $42,300. Employers pay SUI on the first $42,300 of each employee's wages per year.
What is the new employer SUI rate in New Jersey?
New employers in New Jersey typically pay an SUI rate of 2.8%. Experienced employer rates range from 0.40%–5.40% based on claims history.
When are New Jersey payroll taxes due?
New Jersey SUI taxes are typically filed quarterly. State income tax withholding is remitted on the schedule assigned by the New Jersey Division of Taxation — monthly or quarterly based on liability. Check with the New Jersey Division of Taxation for current due dates.
Does New Jersey have local payroll taxes?
Some New Jersey municipalities may impose local taxes. Check with local authorities for specific requirements.
Simplify New Jersey Payroll
Gusto automatically calculates, withholds, and deposits both federal and New Jersey payroll taxes. It files your quarterly and annual returns, too. Trusted by over 300,000 small businesses.
Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of February 2026 and may not reflect recent changes in federal or New Jersey state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with New Jersey law before making payroll or compliance decisions for your business.