New Jersey Tax Guide for Employers (2026) 

New Jersey has a progressive income tax system with some of the most filing status options of any state. The state also has mandatory employee contributions for State Disability Insurance (SDI) and Family Leave Insurance (FLI), plus a workforce development surcharge. 

New Jersey’s progressive income tax features multiple brackets. Employees complete Form NJ-W4 with a broad range of filing status options. The state also requires employee contributions to SDI and FLI programs. New Jersey is one of the few states with both disability and family leave insurance programs funded through employee payroll deductions. 

New Jersey supports the following supplemental calculation methods. Supplemental wages such as bonuses and commissions will be calculated using the applicable method. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 2.8%. 

New Jersey requires employee contributions to State Disability Insurance (SDI). This is withheld from employee wages. Verify the current rate at https://www.nj.gov/treasury/taxation/businesses/withholding.shtml.

New Jersey requires contributions to New Jersey Family Leave Insurance (FLI). Both employer and/or employee contributions may apply. Verify the current rates and requirements at https://www.nj.gov/treasury/taxation/businesses/withholding.shtml.

Follow these steps to begin withholding New Jersey payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the New Jersey Division of Taxation at njbgs.com
3. Register for SUTA, SDI, and FLI with the NJ DOL at nj.gov/labor
4. Submit a Netchex tax team request to enable NJ SIT, SDI, FLI, and SUTA
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all New Jersey payroll taxes on your behalf. 

The following are general filing and deposit deadlines for New Jersey payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at New Jersey Division of Taxation. 

Note: Deadlines are subject to change. Always confirm current requirements directly with New Jersey Division of Taxation at https://www.nj.gov/treasury/taxation/businesses/withholding.shtml. 

The following official resources will help you stay current on New Jersey payroll tax requirements: 

• New Jersey Division of Taxation
• New Jersey DOL Employer Resources
• New Jersey Family Leave Insurance

What is New Jersey’s SDI/TDI program? 

New Jersey requires employee contributions to State Disability Insurance (SDI/TDI). Employers may also contribute if they choose a private plan. Verify rates at myunemployment.nj.gov. 

Does New Jersey have Family Leave Insurance? 

Yes. New Jersey’s Family Leave Insurance (FLI) is funded through employee payroll deductions. Verify current rates at myleavebenefits.nj.gov. 

What form do New Jersey employees complete? 

Employees complete New Jersey Form NJ-W4, the Employee’s Withholding Allowance Certificate. 

What is New Jersey’s SUTA wage base? 

New Jersey’s SUTA wage base is $42,300 per employee per year (2025). Verify at nj.gov/labor. 

What is New Jersey’s top income tax rate? 

New Jersey’s top marginal income tax rate is 10.75% (on income over $1 million).