New Jersey Paycheck Calculator
Use New Jersey Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.
Where are you employed?
How much do you get paid annual?
How often are you paid?
What is your federal filing status?
Children under 17 and students under 24
All other dependents
Where do you live?
Benefits and Deductions
Federal Income Tax
Alabama State Tax
What Are Payroll Taxes?
Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.
The Social Security tax is paid by both the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.
Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.
Each state also has specific state payroll taxes that must be withheld and paid.
New Jersey Payroll Taxes
There are five New Jersey employer payroll taxes to keep track of in addition to Social Security and Medicare.
Employees pay into:
- State Income Tax
Both employers and employees pay into:
- Temporary Disability (DI)
- State Unemployment Tax Account (SUTA)
- Workforce Development (WF)
- Family Leave Insurance (FLI)
- Workforce Development (WF)
Under SUTA. companies must allocate a portion of their payroll taxes toward the state’s unemployment program, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.
In New Jersey, SUTA is paid on the first $39,800 of annual per-employee income. Employers receive a rate based on an employer reserve ratio and an unemployment trust fund ratio.
The rate for new employers is 2.8%.
The Workforce Development Fund (WF) provides funding for job training efforts. Workforce Development contributions by employers are included in the SUTA rate assigned.
Temporary Disability Insurance (DI) fund employer rates are based on employer experience. The taxable wage base is $151,900.
Family Leave Insurance
Family Leave Insurance (FLI) contributions by employers are based on employer experience. The taxable wage base is $151,900.
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Find more information on New Jersey payroll tax rates at the Department of Labor website.
State Income Tax
New Jersey state income tax rates are based on income and filing status. You can find more information on rates on the New Jersey Department of the Treasure website.
Paying Payroll Taxes
Just as you need an EIN to pay federal payroll taxes, in New Jersey, you’ll need to register for state withholdings and SUTA taxes with the Department of the Treasury.
To pay state withholding and SUTA taxes, sign into your account on the Division of Taxation website. You’ll also use this account to make WF, DI, and FLI contributions.
Your municipality may also require certain tax registrations, so be sure to check with your local government for requirements.
Using a Payroll Tax Service
In New Jersey, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.
You’ll just send over your digital timesheets and relevant information, and the service provider will take care of the calculations, payments, and taxes, freeing you up to focus on growing your business.
We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!