PDF document

- 1 -

                                                                   New Jersey 
                                                           Income Tax Withholding 
                                                                  Instructions 
      NJ-WT 
                 
    This Guide Contains:                                           
     Mandatory Electronic Filing of 1099s 
                                                                   
     How to Calculate, Withhold, and Pay New Jersey Income Tax 
                                                                   “Customer quotes, 
     Withholding Rate Tables 
                                                                   called “pull quotes,” are 
      Instructions for the Employer’s Reports (Forms NJ-927 and 
     
      NJ-927-W)                                                    an excellent way to 

     Instructions for Domestic Employer’s Report (Form NJ-927-H)  demonstrat your 

     Form NJ-W4 (Employee’s Withholding Certificate)              success and put 
                                                                   emphasis on your 
     Form NJ-W-4P (Voluntary Withholding for Pension Income) 
                                                                   values. They also add 
     Sample Form W-2 
                                                                   visual interest to your 
     Withholding Requirements for Certain Construction 
                                                                   newsletter...” 
      Contractors 

     Contact information for the Department of Labor and          - Kim Abercrombie 
      Workforce Development on Questions about New Jersey 
      Unemployment, Disability, and Family Leave Insurance 

     Penalty and Interest Guidelines and Rates 

                                                                                             1

- 2 -

Enlarge image

                              Revision History 

 Date               Page      Topic                    Revision 
                    Number(s) 

                                                       This revision updates guidance to refer readers to 
 June 14, 2022      4         Are You An Employer?     the New Jersey Department of Labor and 
                                                       Workforce Development instead of the IRS. 

                                                       This revision adds withholding and reporting 
                              Compensation Paid to 
 September 15, 2022 7 & 16                             guidance for compensation paid to election 
                              Election Workers 
                                                       workers.  

                                                       This revision clarifies that combat zone 
                              Combat Zone 
 September 15, 2022 7 & 16                             compensation is only excludable from Income Tax 
                              Compensation 
                                                       for members of the U.S. Armed Forces. 

                                                       This revision adds guidance for new legislation 
 February 23, 
                    8 & 28    Employer Sourcing Rules  enacted in 2023 explaining the convenience of 
 2024 
                                                       employer sourcing for nonresidents.  

                                                       This revision adds guidance regarding payment(s) 
                              Film and Media Content   made to a homeowner for the use of their 
 February 23, 2024  21 
                              Production               personal residence in New Jersey for filming as a 
                                                       qualified film production expense. 
                               
                                                                                                          2

- 3 -

Enlarge image

Personal Responsibility for Business Withholding on Supplemental Wage Payments
Owners, Partners, and Officers .................5 (Bonuses, Commissions, Overtime Pay, Tips,
Etc.)………………………………………………………..11
Employers ................................................5 Paying Unused Employee Benefit Time.......... 11

Are You an Employer? .................................... 5 Correcting Withholding Mistakes ........... 12
How to Get a Federal Employer Identification If You Do Not Withhold Enough ................... 12
Number ........................................................... 5
If You Withhold Too Much ........................... 12
How to Register as a New Jersey Employer .... 5
Filing and Paying New Jersey
Compensation Subject to Withholding ........... 5
Withholdings ......................................... 12
Compensation Not Subject to Withholding .... 6
How to File and Pay Online .......................... 12
Employee Residency and When to
Withhold ..................................................8 Quarterly Return – Form NJ-927 or NJ-927-W
...................................................................... 12
Residents Working in Another State .............. 8
Quarterly Due Dates ..................................... 12
Nonresident Employees .................................. 8
Seasonal Businesses ..................................... 13
New Jersey and Pennsylvania Reciprocal Businesses With Multiple Locations ............. 13
Agreement ...................................................... 8
Use Form NJ-927 to Report .......................... 13
Local Wage Taxes in Pennsylvania .................. 8
Monthly Payments – Form NJ-500 ............... 13
Military Personnel........................................... 8
Monthly Due Dates ...................................... 13
Rules for Military Spouses Working In New
Jersey .............................................................. 9 Weekly Payers – Form NJ-927-W ................. 13
Domestic Employers ....................................... 9 Weekly Due Dates and Guidelines ............... 14
How to File if You Are a Domestic (Household)
How to Withhold .................................... 10
Employer ................................................................ 14
Giving Employees Form NJ-W4 .................... 10 Correcting Form NJ-927, NJ-927-W, or
Calculating the Amount of Income Tax to NJ-927-H ....................................................... 14
Withhold ....................................................... 10 Requesting a Refund .................................... 14
Resident Employees Working in Multiple Penalties, Interest, and Fees ........................ 14
States ............................................................ 10
Late Filing Penalties ...................................... 14
Nonresident Employees Working in Multiple
Late Payment Penalty................................... 14
States ............................................................ 10
Interest ......................................................... 14
Allocating New Jersey Income ...................... 10
Collection Fees ............................................. 15
Employees Anticipating No Income Tax
Liability in New Jersey ................................... 11 ACH Debit/Credit Payers .............................. 15
EFT Codes ..................................................... 15
Required Date Format .................................. 15
3
NJ-WT
February 2024

- 4 -

Enlarge image

Form W-2 (Wage and Tax Statements for Filing and Paying New Jersey Withholdings .22
Employees) ............................................ 16 When to Issue 1099-Rs ................................. 22
What to Include in Box 16 of Form W-2 ....... 16
Filing the NJ-W-3 (Annual Reconciliation) 22
What to Exclude from Box 16 of Form W-2 16
When to Give Employees Form W-2 ............ 17 Payers of Gambling and Lottery
Filing Form W-2 ............................................ 17 Winnings ........................................... 23
Correcting or Reissuing W-2s........................ 17
Calculating Withholdings from Gambling and
Form NJ-W-3 (Reconciliation of Tax New Jersey Lottery Winnings ...................... .23
Withheld) ............................................... 18 Slot Machines, Keno, or Bingo ..................... 23
When to File Form NJ-W-3 ........................... 18 Lottery Winnings of 10,000 or Less .............. 23
Small Business Owners ................................. 18 Lottery Winnings of 10,001 or More ............ 23
Filing Form NJ-W-3 ....................................... 18 Filing and Paying New Jersey Withholdings . 23

Correcting Form NJ-W-3 ............................... 18
Issuing Form W-2G ................................................ 23
1099 Reporting ....................................... 19 Filing Form NJ-W-3 (Annual Reconciliation). 23
When to File Form 1099 ............................. 19
Rate Tables ............................................ 24
Payers of Proceeds from Real Estate
Transaction ........................................................... 19 Which Rate Table to Use .............................. 24
Mandatory Electronic Filing of 1099 Forms Withholding Allowance Value Table ............ 24
................................................................... 19
Examples of Percentage Method
Filing Forms 1094/1095 Electronically ....... 20
Calculations .................................................. 25
Construction Contractor Services ............ 21
Forms .................................................... 26
Contractors Exempt From Withholdings ...... 21
Form NJ-W-4P ............................................... 27
How to Register or Get Proof of Registration
Sample W-2s ................................................. 28
.......................................................................21
Filing and Paying Contractor Withholdings .. 21 Contact Information ............................... 31

Film and Digital Media Content Production
……………………………………………………………..21

Withholding From Pensions and Annuities
.............................................................. 22

How to Obtain an Employer Identification
Number ......................................................... 22
How to Register ............................................ 22
New Jersey Residents Requesting
Withholdings on Pension and Annuity ......... 22
Calculating New Jersey Withholdings on
Pension and Annuity Payments .................... 22

4
NJ-WT
February 2024

- 5 -

Enlarge image

Personal Responsibility for Business Owners, Partners, and Officers

When you are required to withhold New Jersey Income Tax, you are acting as a trustee on New Jersey’s behalf. If you
do not withhold and pay Income Tax as required:
 You are limiting your employees/payees’ ability to meet their tax responsibility; and
 You can also be held personally liable for any amounts you should have withheld.

This guide provides information to help you withhold, report, and pay New Jersey Income Tax.

Employers

Are You an Employer?
The Division of Taxation does not determine an employee/employer relationship for the purposes of Unemployment
Insurance. The New Jersey Department of Labor and Workforce Development (DOLWD) administers the IRS ABC Test
to determine whether a worker is an employee or an independent contractor.

State law requires workers to be considered employees except under certain circumstances. Those circumstances can
include whether: the worker is customarily engaged in an independently established occupation; and the work is
outside the usual course of the business for which the service is performed; and the worker is free from control or
direction over their work performance.

DOLWD auditors and investigators use the Worker Classification Questionnaire to evaluate if an individual’s
relationship with the business is that of an employee or independent contractor.

If you have additional questions, review the DOLWD’s Employment Under the NJ Unemployment Compensation Law
informational packet, or contact the DOLWD at (609) 292-2321.

How to Get a Federal Employer Identification Number
You need a Federal Employer Identification Number (FEIN) to withhold New Jersey Income Tax. You can apply for a
FEIN on the IRS’s website.

How to Register as a New Jersey Employer
You can register online.

If you already registered your business and need to tell New Jersey you are now an employer, you can do so online.

Every employer needs a Federal Employer Identification Number to register for New Jersey withholdings.

If you are a corporate entity, you will also need a 10-digit New Jersey Corporate Identification Number from the
Division of Revenue and Enterprise Services. If you already have a 10-digit ID number but do not remember what it is,
you can use the Business Name Search or contact that Division at 609-292-9292.

Compensation Subject to Withholding
Most compensation earned in New Jersey, whether by residents or nonresidents, is subject to New Jersey
withholdings.

5
NJ-WT
February 2024

- 6 -

Enlarge image

 Generally, if an item is considered employee compensation for federal Income Tax withholding, it is subject to New 
 Jersey Income Tax withholding. Include the items listed below when calculating the withholding amount for an 
 employee’s compensation: 

      Salaries 
      Wages 
      Tips 
      Fees 
      Commissions 
      Bonuses 
      Other remuneration received for services rendered 
      Compensation paid under an accident or health insurance plan. See temporary disability benefits in the 
       section below 
      Employee contributions to retirement plans other than a 401(k) in the year they are made 
      401(k) contributions that exceed the federal limit 
      Amounts an employee takes out of cafeteria plans even if the employee elects to receive benefits rather than 
       cash 
      Combat zone compensation paid to members of the Armed Forces of the United States (for Tax Year 2020 and 
       before) even if the income was excluded federally 
  
 Compensation Not Subject to Withholding 
 New Jersey does not tax the following items and they should not be included in the State wage portion of your 
 employee’s W-2. 

      Temporary disability benefit payments required to be made under the State Plan administered by the Bureau 
       of State Plan Disability Law 
      Temporary disability benefit payments required to be made to employees under a company’s private plan 
      401(k) contributions up to the federal limit 
      Life insurance proceeds paid due to death 
      Worker’s compensation due to personal injury or sickness 
      Damages paid by suit or agreement due to personal injury, sickness, or wrongful imprisonment 
      Scholarships paid by an educational institution 
      Fellowship grants 
      Amounts paid and used for travel, research, or equipment expenses incidental to a scholarship or research 
       grant 
      Commuter Transportation Benefits - up to a certain limit 
       o       Proof of payment for alternative transportation (receipts, ticket stubs, etc.) must be provided by   the 
               employee  to  qualify  for  the  exclusion.  For  more  information,  see Employee  Tax  Incentives  for 
               Employer-Provided Commuter Transportation Benefits. 
      Medical Savings Account (IRC Section 220, Archer MSA) contributions excludable for federal purposes 
      Cafeteria plans that require a portion of the employee’s benefit dollars be used to purchase certain benefits 
       (commonly a minimum level of medical, life insurance, and/or long-term disability coverage) 

                                                                                                                        6 
 NJ-WT 
 February 2024

- 7 -

Enlarge image

      Cafeteria plans when the employee receives cash instead of benefits if: 
       o       The plan does not reduce an employee’s salary 
       o       Employee receives similar benefits from another source, e.g. a spouse’s/civil union partner’s coverage. 
               The value of the cash option is not taxable by the IRS 
      Combat zone compensation paid to members of the Armed Forces of the United States (for Tax Year 2021 and 
       after) that is excluded from federal taxable income 
      Compensation for services performed by an election worker (for Tax Year 2022 and after) 
 
                                                                                                                       7 
 NJ-WT 
 February 2024

- 8 -

Enlarge image

Employee Residency and When to Withhold

Resident Employees Working in New Jersey
All wages and employee compensation paid to a resident working in New Jersey is subject to withholding.

If you employ New Jersey residents working in New Jersey, you must register,file, and pay New Jersey employer
withholdings.

Residents Working in Another State
You are not obligated to withhold New Jersey Income Tax if a New Jersey resident meets all three of the following:

 Employed totally outside New Jersey;
 Subject to the withholding tax of that state; and
 The withholdings required by that state equal or exceed the withholdings required for New Jersey.

If the employee works only part of the time out of state or the other state’s withholding tax rate is lower than New
Jersey’s, you must withhold New Jersey taxes in addition to the other state to offset the employee’s resident income
tax liability.

Nonresident Employees
You must withhold New Jersey tax from compensation paid to nonresident employees working in New Jersey.

If a nonresident employee works inside and outside New Jersey, only the compensation paid for work performed in
New Jersey is subject to New Jersey withholding.
For tax year 2023 forward , New Jersey employers can establish a “convenience of the employer test” for nonresident income
sourcing. This only applies to employees who are residents of certain states that impose a similar test. Additional information is
available.

New Jersey and Pennsylvania Reciprocal Agreement
New Jersey and Pennsylvania have a reciprocal agreement. You are not required to withhold on compensation paid
to Pennsylvania residents working in New Jersey if they file an Employee’s Certificate of Nonresidence in New Jersey
(Form NJ-165). You must keep the completed Form NJ-165 in your records.

You must withhold New Jersey tax if your employee does not complete the certificate.

Similarly, a New Jersey resident working in Pennsylvania generally does not need Pennsylvania withholdings. Under
the reciprocal agreement, you should withhold tax for these employees in the state in which they live, not the state
in which they work.

Local Wage Taxes in Pennsylvania
The reciprocal agreement does not excuse an employer from withholding local wage taxes imposed by cities, towns,
or other localities in Pennsylvania. Contact the Pennsylvania Department of Revenue for more information.

Military Personnel
Military personnel with a New Jersey home of record are subject to New Jersey withholdings unless:

 They did not maintain a permanent home in New Jersey;
 They maintained a permanent home outside New Jersey; and

8
NJ-WT
February 2024

- 9 -

Enlarge image

      They did not spend more than 30 days in New Jersey during the taxable year 

                                                                                  10 
 NJ-WT 
 February 2024

- 10 -

Enlarge image

Rules for Military Spouses Working In New Jersey 
 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 their employer. 
 
 These provisions are covered under the Service members Civil Relief Act (SCRA), as amended by the Federal Military 
 Spouses Residency Relief Act. 
 
 Domestic Employers 
 If you employ a household worker, you may be considered a domestic employer. Some examples of this are nannies, 
 caretakers, housekeepers, butlers, groundskeepers, etc. The IRS can advise you if you need to withhold federal taxes 
 for these employees. If you do, you must also withhold New Jersey taxes. Your employee can also choose to have 
 New Jersey taxes withheld or claim they are exempt from the withholding requirement. If you determine you are a 
 domestic employer and are required to withhold, you must file and pay annually. 

                                                                                                                      9 
 NJ-WT 
 February 2024

- 11 -

Enlarge image

                                         How to Withhold 
                                                                                                      
 Giving Employees Form NJ-W4 
 
 You must give Form NJ-W4 to your employees to fill out and return to you. This form tells you how to withhold tax 
 from your employee’s pay. Do not use the federal W-4 to calculate New Jersey withholdings because employees 
 cannot claim personal exemptions on the federal form.  
 You should keep completed forms for your records and only submit them to the Division upon request. 
 
 Calculating the Amount of Income Tax to Withhold 
 Calculate the amount to withhold using: 

      The withholding tables or methods in this guide; 
      The rate selected by the employee on Form NJ-W4; 
      The withholding exemptions from Form NJ-W4; 
      The employee’s filing status from Form NJ-W4; 
      Any additional amount listed on line 5 of the Form NJ-W4. 
 
 Do not withhold if an employee has given you Form NJ-W4 stating they are exempt from New Jersey Income Tax 
 withholdings for the year. 

 In special situations, an employer may apply to the Director of the Division of Taxation for permission to use another 
 method. An agreement in writing may be made between the employer and employee to have additional amounts of 
 New Jersey tax withheld. 
 
 Resident Employees Working in Multiple States 
 To avoid withholding too much from your employee, the amount of New Jersey Income Tax you withhold should be 
 reduced by the amount of Income Tax you withhold for other states, their political subdivisions, or the District of 
 Columbia. 
 
 Nonresident Employees Working in Multiple States 
 You are required to withhold New Jersey Income Tax from all compensation paid no matter where earned, unless you 
 use the calculation below to determine the percentage of income earned in New Jersey or maintain current records 
 to determine the exact amount of compensation earned from New Jersey sources. 

 Allocating New Jersey Income 
 If you are not sure what was earned in New Jersey and what was earned out of state, allocate the amount of wages 
 that should be taxed by New Jersey using the calculation below. Use the resulting wage figure to calculate the correct 
 withholding amount. 
 
 Days worked in New Jersey  
                            X  Total wages for the year = Wages earned in New Jersey 
 Total days worked all year 

 If you have a record of the exact amount of income earned from work in New Jersey, you should only withhold on 
 that amount. 

                                                                                                                        10 
 NJ-WT 
 February 2024

- 12 -

Enlarge image

 Employees Anticipating No Income Tax Liability in New Jersey 
 If your employees expect to earn wages below our Income Tax filing requirements, they should complete Form NJ-
 W4 and write EXEMPT on line 6. You do not need to withhold if the employee writes EXEMPT on line 6 of Form NJ-
 W4. 
 
 Withholding on Supplemental Wage Payments (Bonuses, Commissions, Overtime Pay, Tips, Etc.) 
 If the supplemental wages are paid at the same time as regular wages: 

      Total the employee’s regular wage and supplemental wages and withhold at the appropriate rate based on 
       the combined payment. 

 If the supplemental wages are paid at a different time: 

      Withhold from the supplemental wages without any exemption allowances your employee takes on the NJ- 
       W4. 
 
 Paying Unused Employee Benefit Time 
 You should treat payments of accumulated employee benefit time (such as unused sick or vacation time) as a supplemental 
 wage payment.

                                                                                                                         11 
 NJ-WT 
 February 2024

- 13 -

Enlarge image

Correcting Withholding Mistakes

If You Do Not Withhold Enough
If you do not withhold enough, or withhold less than what your employee requested, you should inform the employee
and withhold additional tax on later payments to make up the difference. If you do not withhold the correct amount
of taxes, your employees may owe money when they file their Income Tax return.

If You Withhold Too Much
If you withhold more than the amount of tax requested, you should repay the difference to the employee.
Reimbursement is a matter of settlement between you and your employee. If you do not repay your employee, you
should pay the full withholdings to the State in the quarter it was withheld and include the entire amount withheld
on your employee’s W-2.

Filing and Paying New Jersey Withholdings

Anyone withholding New Jersey Income Tax (except domestic employers) is required to file the Employer's Quarterly
Report (Form NJ-927 or NJ-927-W). You must file and pay electronically.

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.

How to File and Pay Online
You must file and pay your withholdings through our website, certified software or a payroll company. You will need
your 12-digit FEIN and 4-digit PIN we assigned to you when you registered. You can also file with your 12-digit FEIN
and the business name.

Quarterly Return – Form NJ-927 or NJ-927-W
All employers, except domestic employers, must file a quarterly return Form NJ-927, even if there was no tax withheld
for the quarter. You must submit the total of all tax withheld for the quarter (after taking credit for monthly and/or
weekly paymentsmade), electronically, by 11:59 p.m. on the 30th day of the month following the end of the quarter.
If the due date falls on a weekend or holiday, Form NJ-927 is due the next business day.

Quarterly Due Dates

Period Months in Period Due Date

1stQuarter January - March April 30

2nd Quarter April - June July 30

3rd Quarter July - September October 30

4th Quarter October - December January 30

12
NJ-WT
February 2024

- 14 -

Enlarge image

 Seasonal Businesses 
 You are required to file returns for all four periods – including quarters in which you conduct no business. 
 
 Businesses with Multiple Locations 
 If you have multiple locations under the same FEIN, you must file combined withholding returns for all locations under 
 one number. 
 
 Use Form NJ-927 to Report 
      New Jersey Gross Income Tax withheld 
      Unemployment Insurance* 
      Supplemental Workforce Fund* 
      Workforce Development Partnership Fund* 
      Family Leave Insurance* 
      Disability Insurance wage and withholding information* 

 *Administered by the Department of Labor and Workforce Development 
 
 Monthly Payments – Form NJ-500 
 If you collected more than $500 in tax withheld for the first and/or second months of the quarter, you are required to 
 make monthly payments using Form NJ-500 for those months. The third month of the quarter is always paid with the 
 quarterly return. 
 
 Monthly Due Dates 
 Your monthly payment is due by 11:59 p.m. on or before the 15th day of the month following the month it was 
 collected. You will take credit for any monthly payments made when you file that quarter’s return. See chart below. 
 
                      Quarter                  Month                      Due Date 

                                               January                    February 15 
                    1stQuarter 
                                               February                   March 15 
        
                                               April                      May 15 
                    2nd Quarter 
                                               May                        June 15 
        
                                               July                       August 15 
                    3rd Quarter 
                                               August                     September 15 
        
                                               October                    November 15 
                    4th Quarter 
                                               November                   December 15 
 
 Weekly Payers – Form NJ-927-W 
 If you had a prior year liability of $10,000 or more of Income Tax withheld, you are designated a "weekly" payer and 
 are required to make payments based on the frequency of your pay period. 

                                                                                                                        13 
 NJ-WT 
 February 2024

- 15 -

Enlarge image

 Weekly Due Dates and Guidelines 
      You are required to make the withholding payments by 11:59 p.m. of the Wednesday after the pay week. 
      “Weekly” payers do not necessarily make payments every week. 
          o If you have a bi-weekly payroll, you would pay bi-weekly. If you have a monthly payroll, you would pay 
               monthly. 
      You are still required to file a quarterly return (NJ-927-W) by the 30th day of the month following the end of the 
       calendar quarter. 
      If you are a weekly filer, use Form NJ-500 to make weekly payments. 
 
 How to File if You Are a Domestic (Household) Employer    
 You will report and pay Income Tax withholding and unemployment and disability insurance electronically once a year 
 using Form NJ-927-H. You must file the form by January 31 for the prior calendar year. You do not file quarterly returns 
 (Forms NJ-927 or NJ-927-W) or monthly remittances (Form NJ-500). 

 However, if you have both household and regular employees, you will file and pay for both, using Form NJ-927 or NJ-
 927-W. 
 
 Correcting Form NJ-927, NJ-927-W, or NJ-927-H 
 You can make corrections to your quarterly returns by using our     online filing system. This will replace your original 
 return. If you make corrections after the due date of your return, the Division may bill you for penalties and interest 
 on any additional amount due. 
 
 Requesting a Refund 
 If you are overpaid in: 
 
      The current period, you can request a refund on that quarter’s NJ-927; 
      A prior period, you must amend that quarter’s NJ-927 to request a refund; 
      A prior year, you must amend the NJ-927 for that quarter and your NJ-W- 3. 

 Penalties, Interest, and Fees 
 If you file or pay late, you may be charged a penalty and interest. 
 
 Late Filing Penalties 
      5% per month (or fraction of a month) of the balance of tax due at the original return due date; 
          o    Not exceeding 25% of tax liability; 
      $100 per month (or fraction of a month) penalty if the return is late. 

 Late Payment Penalty 
      5% of the balance of tax due and paid late. 

 Interest 
      3% above the prime rate 
          o    Imposed each month (or fraction of a month) on the unpaid balance of the tax from the original due 
               date to the date of payment; 
          o    At the end of each calendar year, we will add the outstanding tax, penalties, and interest to your 
               balance due. Interest is charged on the combined balance. 
                                                                                                                           14 
 NJ-WT 
 February 2024

- 16 -

Enlarge image

 Collection Fees 
      Tax Bills Sent to a Collection Agency 
       We add an 11% referral cost recovery fee to your balance due. 
      Certificate of Debt 
       We add a cost of collection fee of 5% to 20%. 
 
 ACH Debit/Credit Payers 
 If you are a registered ACH Debit/Credit payer, use the codes below to specify the payment frequency. 
 
 EFT Codes 
                         Payment Frequency                           Code 
                           Quarterly                                 01130 
                           Monthly                                   01120 
                           Weekly                                    01170 
 
 Required Date Format 
 If you are paying by ACH Debit or Credit, you are required to use the quarter’s tax period end date for all payments. 
 Use the “year, month, last day of month” format below: 
 
                         IF the quarter is...            THEN the tax period end date is… 

                           1st                                       240331 

                           2nd                                       240630 

                           3rd                                       240930 

                           4th                                       241231 
  
 For example: ABC Company, a weekly payer, has a payday on June 7, 2024, and withholds $1,500 of New Jersey 
 Income Tax. ABC Company must remit $1,500 via Electronic Funds Transfer (EFT) by Wednesday, June 12, 2024. The 
 Tax Period End Date on the EFT transaction would be “240630,” and the NJ-927-W Income Tax liability and payment 
 would be reported on the June 2024 Employer’s Quarterly Report. 

                                                                                                                       15 
 NJ-WT 
 February 2024

- 17 -

Enlarge image

                   Form W-2 (Wage and Tax Statements for Employees) 
                                                                                                              
 What to Include in Box 16 of Form W-2 
      State wages, tips, and compensation paid including: 
       o       Employee elective amounts contributed to all types of pension plans, except elective contributions to 
               IRC section 401(k) Plans 
       o       Non-excludable cafeteria plan contributions 
       o       IRC section 129 dependent care benefits 
       o       IRC section 137 adoption expense benefits 
      State Income Tax withheld 
      The name of the State to which withholdings were paid 
      Unemployment Insurance Withholding* 
      Supplemental Workforce Fund* 
      Workforce Development Partnership Fund* 
      Disability Insurance* 
       o       Include private plan number for disability* 
      Family Leave Insurance (FLI) Contributions* 

 * Administered by the Department of Labor and Workforce Development (See Contacts.) 
 You  must  include  a  combined  amount  for  Unemployment  Insurance/Supplemental  Workforce  Fund/Workforce 
 Development Partnership Fund and report separate amounts for both State Disability Insurance withheld and Family 
 Leave Insurance. 
 
 What to Exclude from Box 16 of Form W-2 
 If you pay any of the categories below to your employee, do not report them in box 16 as wages. Follow IRS guidelines 
 to determine how they are reported on a W-2. 
      Proceeds of life insurance contracts payable by reason of death 
      Employees’ death benefits 
      Amounts received under worker’s compensation acts for personal injuries or sickness 
      Amounts of damages received, whether by suit or agreement on account of personal injuries or sickness 
      Any amount received as a scholarship at an educational institution 
      Any amount received as a fellowship grant 
      Any amount that is paid to a scholarship, fellowship, or research grant recipient that is used for general living 
       expenses  such  as  room,  board,  travel,  etc.,  in  excess  of  tuition  and  related  expenses  (fees,  books  and 
       supplies.) 
      Amounts received as combat zone compensation by members of the Armed Forces of the United States (for 
       Tax Year 2021 and after) that is excluded from federal taxable income  
      Compensation for services performed by a member of an election worker (for Tax Year 2022 and after) 
 
                                                                                                                              16 
 NJ-WT 
 February 2024

- 18 -

Enlarge image

When to Give Employees Form W-2
Employees who worked until December 31
 No later than February 15 of the following year

Employees who leave before December 31 and are not expected to return
 30 days after the last wage payment

Employees already issued a W-2, who returned to work in the same calendar year
 Must be issued a second W-2 covering that period of employment

Filing Form W-2
You have options to file your W-2s electronically:
1. File on our website: If you are registered to withhold New Jersey Income Tax, log into your account to
electronically file Forms W-2 and NJ-W-3. If you are not required to register, create an online account to file
Form W-2.

2. Online Upload Service: You may upload Forms NJ-W-3, W-2, W-2G, and/or 1099 with this service. There is no
limit to the number of documents you can upload at once, as long as the uploads are in the correct, pre-specified
format. Visit the FAQ webpage to learn more about this service and other specifications.

3. File using Axway: For those filing at least 100 forms, you can electronically file Forms NJ-W-3 and W2/1099 using
our secure electronic bulk filing service provider. Visit the E-filing services webpage to learn how.

4. Third-party software users: Some accounting software programs and payroll service providers offer business
owners the ability to submit W-2, 1099, and NJ-W-3 forms electronically through their software. Check with
your provider to confirm if this feature is available .

Correcting or Reissuing W-2s
 Corrected W-2s
Issue Form W-2c to the employee if corrections are made after the original is issued. Corrected W-2s must be
issued by the dates listed above. Include a copy of Form W-2c withForm NJ-W-3.
 Lost or destroyed W-2s
Issue a substitute copy clearly marked “reissued by employer” to the employee.
 Undeliverable W-2s
See the IRS’s General Instructions for Forms W-2 and W-3.

17
NJ-WT
February 2024

- 19 -

Enlarge image

Form NJ-W-3 (Reconciliation of Tax Withheld)

When to File Form NJ-W-3
Anyone withholding New Jersey Income Tax must file a year-end reconciliation (Form NJ-W-3) on or before February
15 of the following year. If February 15 falls on a weekend or holiday, the due date is the next business day. If you
stop paying wages during the year, you must file Form NJ-W-3 within 30 days after the last month the business was
active or wages were paid.

Mandatory Electronic Filing Beginning in Tax Year 2020
Beginning with Tax Year 2020, you must submit Form NJ-W-3 and all W-2, W-2-G, and 1099 attachments
electronically.

Small Business Owners
Some accounting software programs and payroll service providers offer small business owners the ability to submit
W-2, 1099, and NJ-W3 forms electronically through their software. Check with your provider to confirm if this feature
is available.

Filing Form NJ-W-3
You have options to file Forms NJ-W-3, NJ-W3-G, NJ-W-3-UNC, and attachments:
1. File on our website: Log into your account to file Form NJ-W-3. You can also enter W-2, W-2-G, and/or 1099
information.

Correcting Form NJ-W-3
 If filing a corrected W-2, W-2G, or 1099, submit an amended Form NJ-W-3 as outlined above. Include a copy of
the corrected W-2s, W-2Gs, or 1099s, with the amended Form NJ-W-3.
 If filing a corrected NJ-W-3 only, submit an amended Form NJ-W-3. You do not need to attach the W-2s or
1099s you submitted with the original W-3.

If the correction changes the amount of tax reported and you already filed quarterly returns, you must amend each
quarterly return affected by the change. See Correcting Form NJ-927, NJ-927-W, or NJ-927-H.

18
NJ-WT
February 2024

- 20 -

Enlarge image

                                              1099 Reporting       
                                                                                                               
 You must provide New Jersey with copies of 1099 information returns when the amount paid or credited is $1,000 or 
 more in a calendar year or if any New Jersey Income Tax was withheld from the payment if you are a payer of: 

      Interest and/or Dividends including: 
       o       Banks 
       o       Savings and loan associations 
       o       Building and loan associations 
       o       Savings banks 
       o       Fiduciaries 
       o       Employers 
      All other interest 
      Rents 
      Salaries 
      Wages 
      Premiums 
      Annuities 
      Compensation 
      Remuneration 
      Other gains 
      Profits or income 
      Anyone required to file federal Form 1099 or any of the Form 1099 designations 

 If you issued Form 1099-R, Form 1099-MISC, or 1099-NEC with New Jersey withholdings, you must file copies of these 
 1099s electronically with Form NJ-W-3. For more information, see Filing Form NJ-W-3 section. 
 
 Payers of Proceeds from Real Estate Transaction 
 If you are required to report the proceeds from real estate transactions to the IRS on federal Form 1099-S (or any 
 other form which the Internal Revenue Code may designate), you are also required to submit all reports to the Division 
 of Taxation if the real estate being sold or exchanged is partially or entirely located in New Jersey. 

 When to File Form 1099 
 You must file Form 1099 information returns on or before February 15 of the following year. If February 15 falls on a 
 weekend or holiday, the due date is the next business day. 
 
 Mandatory Electronic Filing Beginning in Tax Year 2020 
 Beginning  with  Tax  Year  2020,  you  must  submit  Form  NJ-W-3  and  all  W-2,  W-2-G,  and  1099  attachments 
 electronically.  
                            
                                                                                                                        19 
 NJ-WT 
 February 2024

- 21 -

Enlarge image

You have options to file your 1099s electronically.

1. File on our website: If you are registered to withhold New Jersey Income Tax, log into your account to
electronically file Forms NJ-W-3 and 1099. If you are not required to register, create an online account to file
Form 1099.

2. Online Upload Service: You may upload Forms NJ-W-3 and 1099 with this service. There is no limit to the number
of documents you can upload at once, as long as the uploads are in the correct, pre-specified format. Visit the
FAQ webpage to learn more about this service and other specifications.

4. Combined Federal/State Reporting Program: You may register with the IRS in the Combined Federal/State
Reporting Program to file 1099s electronically to the IRS only. The IRS will then provide New Jersey with a copy
of the 1099 information.

You may also contact the IRS Electronic Product and Services Support, Information Reporting Branch, Customer
Service Section, toll-free at 1-866-455-7438 (Monday through Friday, 8:30 a.m. to 4:30 p.m.) or by email
mccirp@irs.gov or by using Telecommunications Device for the Deaf (TDD) at (304) 267-3367.

The State conforms to Federal 1099 electronic filing standards outlined in IRS Publication 1220.

5. Third-party software users: Some accounting software programs and payroll service providers offer business
owners the ability to submit W-2, 1099, and NJ-W-3 forms electronically through their software. Check with
your provider to confirm if this feature is available .

Filing Forms 1094/1095 Electronically
For guidance on electronically filing your Forms 1094/1095, visit our website.

20
NJ-WT
February 2024

- 22 -

Enlarge image

Construction Contractor Services

Individuals and businesses paying certain contractors for construction services (capital improvement or repairs) must
obtain proof of the contractor’s New Jersey registration or withhold 7% of the amount paid for services as Income Tax
withheld.

Contractors Exempt from Withholdings
 Contractors working for any government agency.
 Contractors working for homeowners or tenants on their principal residence.
 Incorporated contractors (corporations). An incorporated contractor means a construction company taxed as
a corporation for federal tax purposes.
 Unincorporated contractors that provide the property owners with a copy of their Business Registration
Certificate (BRC). A BRC is the only valid proof that a business is registered with the State. Property owners
must keep a copy of the construction contractor’s BRC for their records.

How to Register or Get Proof of Registration
 Unregistered construction contractors can register online to receive an immediate BRC.
 Construction contractors who are already registered can get a copy of their BRC online.
 Call (609) 292-9292 if you need assistance.

Filing and Paying Contractor Withholdings
Property owners who withhold tax on behalf of unregistered unincorporated construction contractors may remit their
withholdings using:
 Form NJ-927/NJ-927-W (employers already registered only); or
 Form NJ-550 (non-employers).
The property owner must also:

 Issue Form 1099-MISC showing the amount withheld and;
 Electronically file an Annual Reconciliation using Schedule NJ-W-3-UNC.
o Include copies of forms 1099-MISC with New Jersey withholdings.

Mandatory Electronic Filing Beginning in Tax Year 2020
Beginning with Tax Year 2020, you must submit Form NJ-W-3, NJ-W-3-UNC, and all W-2, W-2-G, and 1099
attachments electronically.

You can find additional information on withholding and remitting tax for unregistered contractors online.

Film and Digital Media Content Production

As a part of the Film and Digital Media Tax Credit Program, taxpayers can benefit from certain “ qualified film
production expenses”. These are expenses incurred in New Jersey for the production of digital media content.

21
NJ-WT
February 2024

- 23 -

Enlarge image

Taxpayers can deduct payment(s) made to a homeowner for use of their personal residence in New Jersey for filming as
a film production expense, as long as the following are met:

 The homeowner is not a vendor authorized to do business in New Jersey; and
 The taxpayer withholds 6.37% of the payment due to the homeowner as Income Tax withheld.

You must be registered to withhold New Jersey Income Tax in order to claim this expense.

If you are already registered as an employer required to withhold, you do not need to register again. You will withhold
and pay your withholdings under your Federal Employer Identification Number.

Withholding From Pensions and Annuities

You are only required to withhold New Jersey Income Tax from pensions and annuities payments if requested by the
recipient. We do not tax pension or annuity payments for nonresidents. Only New Jersey residents should request
withholdings.

How to Obtain an Employer Identification Number
See the How to Obtain an Employer Identification Number Section.

How to Register
See the How to Register Section.

New Jersey Residents Requesting Withholdings on Pension and Annuity
If pension recipients want New Jersey withholdings, they must complete Form NJ-W-4P and submit it to you or the
appropriate section of your company.

Calculating New Jersey Withholdings on Pension and Annuity Payments
You do not calculate withholding for pension and annuity payments. You will withhold the amount requested by
recipients on the NJ-W-4P. If recipients choose to have withholdings, they must have a minimum of $10 withheld from
each pension payment. There is no limit to the maximum they can have taken out, but it must be an even dollar
amount.

Filing and Paying New Jersey Withholdings
See the Filing and Paying withholdings section.

If you withhold from New Jersey pensions or annuities, combine the withholdings with your employee withholdings
for the period and report both on your NJ-927.

When to Issue 1099-Rs
You must issue Form 1099-R to recipients of pension and annuity payments by January 31 of the following year. You
must file Form 1099-R with Form NJ-W-3 if any New Jersey Income Tax was withheld.

Mandatory Electronic Filing Beginning in Tax Year 2020
Beginning with Tax Year 2020, you must submit Form NJ-W-3 and all W-2, W-2-G, and 1099 attachments
electronically. See Filing the NJ-W-3 section.

22
NJ-WT
February 2024

- 24 -

Enlarge image

Payers of Gambling and Lottery Winnings

How to Register

See the How to Register Section.

If you are already registered as an employer and are required to withhold from gambling and/or lottery winnings, you
do not need to register again. You will withhold and pay your gambling/lottery withholdings under your Federal
Employer Identification Number.

Calculating Withholdings from Gambling and New Jersey Lottery Winnings
If you are required to withhold federal Income Tax from gambling winnings, you must withhold New Jersey taxes in
an amount equal to 3% of the payments for both New Jersey residents and nonresidents.

Slot Machines, Keno, or Bingo
You do not have to withhold New Jersey Income Tax, regardless of the amount won.

Lottery Winnings of $10,000 or Less
You do not have to withhold on New Jersey Lottery winnings of $10,000 or less.

Lottery Winnings of $10,001 or More
You must withhold:

 5% for payouts between $10,001 and $500,000; or
 If the claimant does not provide a valid Social Security number or taxpayer identification number, you must
withhold 8%; or
 8% for payouts in excess of $500,000.

Filing and Paying New Jersey Withholdings
See the Filing and Paying withholdings section.

If you withhold from New Jersey gambling and/or lottery winnings and have employees, combine the withholdings
for the period and report both on your NJ-927.

Issuing Form W-2G
You are required to issue the recipient Form W-2G (Statement for Recipient of Certain Gambling Winnings) at the
time winnings are paid.

Mandatory Electronic Filing Beginning in Tax Year 2020
Beginning with Tax Year 2020, you must submit Form NJ-W-3 and all W-2, W-2-G, and 1099 attachments
electronically.

You must also complete Schedule NJ-W3-G (Schedule for Computing Amount Withheld from Employee Wages and
Gambling Winnings) with Form NJ-W-3.

See our Filing the NJ-W-3 section for more detail.

23
NJ-WT
February 2024

- 25 -

Enlarge image

                                              Rate Tables 
                                                                                                                      
 For all other wage amounts, see the New Jersey Withholding Rate Tables. Alternately, for wages up to certain limits, 
 you can use the Supplemental Withholding Tables to determine the withholding amount. 

 Which Rate Table to Use 
                                 FOR EMPLOYEES WHO COMPLETE FORM NJ-W4 

       Withhold at Rate A                            If Box 1 or 3 on Line 2 (Filing Status) is checked 

       Withhold at Rate B                            If Box 2, 4 or 5 is checked and Line 3 is blank 

       Withhold at Rate Selected                     If employee completes Line 3 
 
 Withholding Allowance Value Table 
 
                   Payroll Period                          One Withholding Allowance 

                           Weekly                                           $19.20 

                          Biweekly                                          $38.40 

                        Semimonthly                                         $41.60 

                          Monthly                                           $83.30 

                          Quarterly                                         $250 

                         Semiannual                                         $500 

                           Annual                                                 $1,000 

                   Daily or Miscellaneous                                      $2.70 
 If you are calculating the Income Tax withholdings: 

 1. Multiply  the  proper  withholding  allowance  (above  table)  by  the  number  of  exemptions  claimed  by  the 
       employee; 
 2. Subtract this amount from the wages for the period to determine wages subject to withholding; and 
 3. Refer to the  New Jersey Withholding Rate Tables to determine the withholding amount.  

 Wage amounts may be rounded to the nearest dollar for these calculations. 

                                                                                                                      24 
 NJ-WT 
 February 2024

- 26 -

Enlarge image

 Examples of Percentage Method Calculations 
 
                                             25 
 NJ-WT 
 February 2024

- 27 -

Enlarge image

               Forms 
                      
 Form NJ-W4 
 
                     26 
 NJ-WT 
 February 2024

- 28 -

Enlarge image

 Form NJ-W-4P                                       
                                                    Form NJ-W-4P 
 
       NJ-W-4P CERTIFICATE OF VOLUNTARY WITHHOLDING OF NEW JERSEY GROSS INCOME TAX 
          (04-17)                                  FROM PENSION AND ANNUITY PAYMENTS 
       Print Your Full Name                                                                                                        Your Social Security Number 
                                                                            
                                                                                                                                    -     -                     
       Home Address                                                         
                                                                                      ID Number of Your Pension or Annuity 
       City or Town                                 State  Zip Code         (From Your Statement or Contact Your Payer): 

               I want to have New Jersey Gross Income Tax withheld from this pension or annuity payment in the amount of 
  
          $                                    .00 (Enter a whole dollar amount of $10 or more for each payment.) 
  
          I want to stop withholding New Jersey Income Tax from this pension or annuity payment. 
  
        Your Signature                                                                                                             Date                          
  
                                                MAIL THIS FORM TO YOUR PENSION OR ANNUITY PAYER 
  
                                                    FORM MAY BE REPRODUCED 
 
                                                                                       
       - - - - - - - - - - - - - - - - - - - -  - - - - - - - - - - - - - - - - - - cut here - - - - - - - - - - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - 

 You can use Form NJ-W-4P to notify your pension payer to begin, change, or stop withholding New Jersey Income 
 Tax from your pension or annuity payments. 
 
 Note: If you previously completed this form, do not file again unless you want to make a change. 
 
                                                          Instructions 
 
         Fill in your name, address, and Social Security number; 
         Enter the identification number of your pension or annuity contract. If you do not find this number on your 
          annual pension or annuity statement, ask your pension plan administrator; 
         Check only one box. If you are requesting to have Income Tax withheld, you also must enter the amount 
          you want deducted from each payment; 
         Sign and date the completed form; 
         Mail this form to the payer of your pension or annuity. If you do not have the mailing address, you must 
          contact your payer. 
 
 For State of New Jersey retirees and benefit recipients only, visit the New Jersey Division of Pensions and Benefits 
 for mailing information. 
                                                                                      
                                                                                                                                                                            27 
 NJ-WT 
 February 2024

- 29 -

Enlarge image

  Form W-2 
  Current and year prior W-2 samples are available online in the M-6025 W-2 Sample Reporting Guidelines.  
  
                                                                                                          28 
 NJ-WT 
 February 2024

- 30 -

Enlarge image

                          Contact Information 
                                                                                                    
  NJ Division of Taxation 
                                                       
  Division of Taxation Customer Service Center: (609) 984-1721; or 
                                                       
  Request to visit a Regional Information Center. 

  NJ Division of Revenue 

  For employer registration questions, contact (609) 292-9292. 
   
  NJ Department of Labor and Workforce Development 

  New Jersey Department of Labor and Workforce Development, Division of Employer Accounts Hotline: 
  (609) 633-6400. 

  Family Leave Insurance information: (609) 292-7060. 

  Worker Classification Information: (609) 292-2321. 
  
                                                                                                    29 
 NJ-WT 
 February 2024

PDF file checksum: 3021279436

(Plugin #1/9.12/13.0)