New Jersey Paycheck Calculator

With thousands of employers and a thriving workforce, New Jersey continues to maintain a robust taxpayer base in 2024. More than 187,506 new businesses have been registered in New Jersey as of 2023.

As tax regulations evolve, it is essential for both employers and employees to stay informed and compliant. The New Jersey paycheck calculator will help them calculate the payable taxes. Plus, it will assist you with making your check stub.

Registering a Business in New Jersey

Starting a business in New Jersey is easy; however, it also depends on your business's nature and structure. You can start by finding a unique business name; for this, you can consult your business agent.

The second step is to get an EIN (employer identification number) from the IRS. Gather all the necessary documents for your business and register them with the Division of Revenue. You’ll also need to pay $125 as a registration fee.

 

While starting a business in New Jersey can be straightforward, the process may vary depending on the nature and structure of your business.

1. Choose a Unique Business Name: Conducting a thorough name search is crucial to ensure your chosen name is not already in use. Consulting with a business attorney or utilizing online resources can aid in this process.
2. Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS. This unique identifier is essential for tax purposes and other business activities.
3. Gather and Prepare Documents: Assemble all necessary formation documents, such as Articles of Incorporation or Organization, depending on your chosen business structure (e.g., LLC, corporation, etc.).
4. Register with the New Jersey Division of Revenue: File the required formation documents with the Division of Revenue and pay the applicable filing fee, which may vary depending on the business structure. As of 2024, the registration fee for most business structures is $125.

By following these updated steps and considering the additional factors, you can navigate the business registration process in New Jersey more effectively in 2024.

 

New Jersey Tax Overview

It doesn’t matter if you are a permanent resident of New Jersey; you must pay taxes as long as you earn from a source in New Jersey.

• The state income tax in NJ ranges between 1.40% - 10.75%, and the local payroll tax rate is only 1%. Furthermore, federal taxes are payable at a 22% rate.
• The sales tax rate in New Jersey is 6.625%, and the max local sales tax rate is 3.313%. If you pay both of them, the combined average sales tax rate is 6.60%.
• A form W-2 is required, which contains data about employee wages to file taxes. In addition, employers must provide a W-3 form containing details about total and taxable wages and tax withheld.
• If you earn income from other sources besides your employer, add them in form-1099 before submitting the tax return.

Taxable Base Wage

Social security taxable wage base in New Jersey for 2024 is $160,200

This means that only the first $160,200 of an individual's income is subject to Social Security tax in 2024. Any income exceeding this limit is exempt from Social Security tax.

 

Year	New Jersey Taxable Base Wage
2023	$147000
2022	$147000
2021	$142800

SUTA Rates

State unemployment tax benefits employees who are not working with their employer anymore. It is a type of payroll tax that employers must pay to the state. 

Employee Unemployment Tax:

• The employee unemployment tax rate in New Jersey remained at 0.425% for 2023 and has not changed for 2024.
• This rate applies to the first $41,100 of an employee's wages in both 2023 and 2024.

Employer Unemployment Tax (SUTA):

• The SUTA tax rate for employers in New Jersey varies depending on several factors, including the employer's experience rating and industry.
• The range of SUTA rates for 2024 has not been officially released yet, but it is expected to be similar to the 2023 range of 0.5% to 5.8%.
• Each employer receives a specific SUTA rate based on their individual circumstances, which is communicated to them by the New Jersey Department of Labor and Workforce Development.

 

New Jersey’s unemployment tax in 2023 is 0.425%.

Year	SUTA Rates
2023	0.425%
2021	0.5% to 5.8%
2020	0.4% to 5.4%

FUTA Rates

Employers are responsible for paying this tax as compensation for the workers who have lost their jobs. FUTA (Federal Unemployment Tax) rate is 0.6% to 6.4% of the first $7,000 of each employee’s taxable income. 

Year	New Jersey FUTA Rates
2023	6%
2022	6%
2021	6%

FICA Taxes

FICA is a federal payroll tax that funds Social Security and Medicare. The rates for New Jersey in 2024 are:

 

• FICA Social Security Tax: 6.2% (employee) + 6.2% (employer) = 12.4% total
• Wage Base Limit: $160,200 (only the first $160,200 of income is subject to this tax)
• Medicare Tax: 1.45% (employee) + 1.45% (employer) = 2.9% total
• Additional Medicare Tax: An additional 0.9% Medicare tax applies to individual income exceeding $200,000 (single filers) or $250,000 (joint filers).

New Jersey-Specific Payroll Taxes:

• Unemployment Insurance Tax (SUI): The SUI tax is paid by employers and varies based on their experience rating and industry. The range for 2024 is expected to be similar to the 2023 range of 0.5% to 5.8%. Each employer's rate is determined by the New Jersey Department of Labor and Workforce Development.
• Family Leave Insurance (FLI): For 2024, the FLI tax rate for employees is 0.126% on the first $161,900 of wages. Employers with fewer than 50 employees are not required to pay the employer portion of this tax.
• Disability Insurance (DI): New Jersey does not have a state disability insurance program. However, employers may choose to offer private disability insurance plans to their employees.

 

Payroll Taxes Withholding

 

Rates: The New Jersey Gross Income Tax withholding rates for 2024 are progressive, ranging from 1.4% to 10.75%, depending on income level and filing status. You can find the specific rates in the New Jersey Income Tax Withholding Instructions: https://www.nj.gov/treasury/taxation/pdf/current/njwt.pdf

 

Employer Reporting: All employers are required to withhold New Jersey Gross Income Tax from employee wages and remit it to the state. They must also file quarterly wage reports (NJ-W3) and annual reconciliation reports (NJ-927) with the New Jersey Division of Taxation.

New Jersey Paycheck Calculator

With a free Newark paycheck calculator, you can calculate the take-home salary within minutes. It automatically deducts federal, state, local, FICA, and state insurance taxes.

Pre-tax deductions require details of 401k, medical insurance, HSA, FSA, and LTD: long-term disability insurance, and after post-tax deductions, it calculates the take-home salary.

NJ Hourly Paycheck Calculator

An hourly paycheck calculator calculates your gross income using your per-hour wage rate and the number of hours you worked. Multiple your per-hour wage with total working hours, and you’ll get your monthly gross salary. Deduct all the taxes and adjustments from the gross pay to get your net income.

New Jersey Child Support Calculator

To calculate child support in New Jersey, parents must combine their most recent salary mentioned in their tax returns. After that, they must provide 17% to 35% of their income based on the number of children.

For example,

1. One child will get 17% of their income,
2. 25% for two kids,
3. 29% for three,
4. 31% for four,
5. 35% for five or more children. 

So, if a couple has three kids and a $100,00 annual income, they’ll pay $29,000 for the three children in child support.

Labor Laws in New Jersey

Minimum Wage:

• Standard Minimum Wage: As of January 1, 2024, the minimum wage in New Jersey increased to $15.13 per hour for most employees.
• Tipped Employees: The minimum cash wage for tipped employees is $5.26 per hour, as long as their tips bring their total hourly earnings to at least the standard minimum wage.
• Small Employers: Employers with fewer than six employees are subject to a slower phase-in schedule for the minimum wage increase.
• Agricultural Workers: Different minimum wage rates apply to agricultural workers.

Overtime Pay:

• Employees covered by New Jersey's overtime laws are entitled to 1.5 times their regular hourly wage for any hours worked over 40 in a workweek.

Child Labor Laws:

• New Jersey has strict child labor laws that prohibit employing minors under 14 in most cases.
• Minors aged 14 and 15 are allowed to work limited hours in non-hazardous jobs, and 16 and 17-year-olds have fewer restrictions on hours and types of work.

Paid Sick Leave:

• New Jersey's Earned Sick Leave Law requires most employers to provide employees with up to 40 hours of paid sick leave per year.
• Employees accrue sick leave at a rate of one hour for every 30 hours worked.

Additional Labor Laws:

• New Jersey also has laws regarding meal and rest breaks, equal pay, discrimination, and workplace safety.

New Jersey Paystub Generator

With a New Jersey paystub generator, you can get all the related information like gross pay, taxes, deductions, and net pay in less than a minute. To avoid fake pay stubs, use an error-free pay stub generator like Real Check Stubs. This online paystub generator makes the entire process easy and hassle-free.

New Jersey Tax Resources

 NJ Division of Taxation

• Website: https://www.state.nj.us/treasury/taxation/

• Phone: +1 800-323-4400

• Address: 3 John Fitch Way, Trenton, NJ 08611, United States

Frequently Asked Questions (FAQs)

• Are paycheck calculators reliable?

If there are no special exemptions in your tax return, an online paycheck calculator is a reliable way to find the take-home salary.

• Can I use the New Jersey paycheck calculator for free?

You can find many New Jersey paycheck calculators online for free, which are pretty reliable for finding the net income.

• What is the standard minimum wage in New Jersey for 2024?

The standard minimum wage in New Jersey for most employees is $15.13 per hour as of January 1, 2024.

• Is there a different minimum wage for tipped employees in NJ?

Yes, the minimum cash wage for tipped employees is $5.26 per hour, but their total hourly earnings (including tips) must meet or exceed the standard minimum wage.

• Where can I find the official child support guidelines worksheet?

The worksheet is available on the New Jersey Courts website.

 

Conclusion

While living in the state of New Jersey, to check your take-home salary you can use this article. For instance, you can use the Atlantic City paycheck calculator the same way as mentioned here.