New Jersey payroll taxes for employers (2026)

Why New Jersey payroll costs more

Most states tax only the first $7,000 to $15,000 of wages for unemployment (29 of the 51 jurisdictions in our 2026 data). New Jersey taxes the first $44,800, and it runs two state insurance programs through payroll on top of that.

• Employer TDI. New employers pay 0.5% temporary disability insurance on the same $44,800 base, or $224 per full-year worker.
• Worker contributions, four of them. You withhold UI at 0.3825% and Workforce/Supplemental Workforce at 0.0425% on $44,800, plus TDI at 0.19% and Family Leave Insurance at 0.23% on wages up to $171,100.
• Workers comp from the first paid worker. Corporations need it as soon as anyone, officers included, is paid. Partnerships, LLCs and sole proprietors need it once any non-owner is paid. There is no single-officer exemption, no family exclusion and no minimum payroll, and out-of-state employers with NJ work may need coverage too.
• 2027 bases are already set. The UI wage base rises to $46,400 and the worker TDI and FLI base to $177,100. The 2027 worker rates were not yet published when we checked.

New Jersey has no city wage income tax that employers withhold. We have not researched the Newark and Jersey City employer payroll taxes, so check with those cities if you have staff there. Paydays must be at least semi-monthly (monthly is allowed for bona fide executive and supervisory staff), and departing employees are paid by the next regular payday for that pay period (N.J.S.A. 34:11-4.3, per Teambridge, a secondary source; the NJ DOL pages we read did not cover final pay).

New Jersey employer payroll facts at a glance

Registering a New Jersey employer

1. Get an EIN from the IRS.
2. Register as a new business and employer using the NJ Department of Labor and Workforce Development's "How and When to Register as an Employer" and "Register a New Business" links.
3. Buy workers comp before anyone is paid. New Jersey has no headcount threshold; see how workers comp is priced.
4. Report new hires and rehires within 20 days of the start date.
5. Load Form NJ-WT withholding tables. Supplemental pay made separately from regular wages is withheld without NJ-W4 allowances.

New Jersey example: employer and worker shares on $50,000

For one full-year $50,000 employee at the new employer rates:

The worker pays these New Jersey contributions on top of state income tax, all withheld by you:

If 2027 employer rates stay the same, the higher $46,400 base adds $1,600 of taxable wages at 3.3%, or $52.80 more per worker; the 2027 new employer rates were not in the NJ release we read. See how NJ's base compares nationally.

NJ minimum wage for 2026 and 2027

Most New Jersey employers pay at least $15.92 an hour in 2026; small employers (under 6) and seasonal employers pay $15.23. Tipped staff get at least $6.05 in cash. On January 1, 2027 the rates become $16.48, $16.25 for small and seasonal employers, $15.00 for agriculture, and $6.61 cash for tipped staff (NJ DOL release, September 29, 2026). See all states on the minimum wage page.

Payroll companies and PEOs for New Jersey employers

New Jersey has seven state payroll lines between you and your workers, so check that any provider shows UI, Workforce, TDI and FLI separately on pay stubs and stops each at the right base. If any of your staff live or work in New York or Pennsylvania, you also need multi-state support: Gusto's Plus plan, $80 a month plus $12 per person, is its first tier with multi-state payroll (checked October 16, 2026). See payroll providers by score.

Harbor Compliance (secondary) lists New Jersey as requiring PEO registration; we have not confirmed the regulator. Compare PEOs in our PEO rankings and read what PEOs charge.