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New Jersey has state income tax withholding. Tax rates changed in 2005 (and in 6 of the past 15
years). The withholding amounts are calculated with 'step' tax tables that are similar to the federal payroll
withholding tables.
All New Jersey state tax packages also include the following state taxes:
- New Jersey Disability
Tax (paid by employers and employees)
- Workforce Development Tax (paid by employers and employees)
- Health Care subsidy (paid by employers)
- SUTA contribution (paid by employers and employees)
For more about Goldenseal payroll accounting software, click here.
For more about US Federal withholding in the Goldenseal payroll software, click here.
To download free updates for New Jersey and federal payroll tax tables, click here.
HINT-- Turtle Creek Software provides free annual updates for
US federal and New Jersey tax withholding rates.
New Jersey State Withholding Instructions
To enter New Jersey withholding information for an employee, follow these steps:
- Choose Employees from the Accounts menu.
- Locate the employee record.
- Enter the employee's marital status into the Marital Status field (see note below).
- Enter the number of federal
dependents into the Federal Exemptions field.
- Enter the number of New Jerseydependents into
the State Exemptions field.
New Jersey Unemployment Tax Instructions
In 2005, New Jersey state unemployment insurance tax is based on the first $24,900 of wages. The
starting rate for a new employer is 2.4825%. Unlike most states, there is also an employee SUTA contribution
of .3825%.
After the first year, the rate is different for each employer, depending on past
layoff history.
To enter your New Jersey SUTA tax rate into the Goldenseal payroll software, follow these steps:
- Choose Payroll Setup from the Costs menu,
and choose Tax Items from the submenu.
- You'll see a list of Tax Items. Locate your state's SUTA tax in
the list, and double-click on it. HINT: If you don't see New Jersey SUTA in the list, you'll
need to import your state's payroll info first.
- Get the SUTA percentage rate for your business, and type it into the percentage field to
the right of Calculation method.
- If the SUTA cutoff amount has changed, enter it into the field to the right of First
Adjustment.
Marital Status
Enter one of the following choices into the Marital Status popup field in each employee's account
record:
- Single- single employee (A rate)
- Married- married filing jointly (B rate)
- Dual Income- married filing separately (A rate)
- Head of House- unmarried head of household (B rate)
- Other- not used
If an employee chooses to withhold at the C, D or E rate (from line 3 of the NJ-W4 form), enter the matching tax
package for them into the Tax Package field in the Employee account. In these cases, the Marital Status applies to
the Federal taxes
only. Otherwise use the regular state Tax Package. Contacts
Payroll Tax Office-- 609 292-2121
SUTA-- 609 757-2864
New Jersey Division of Taxation
CN 269 W State & Willow Sts
Trenton NJ 08646-0269
Official State Lawn Ornament
Toll booth. 
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