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Country Payroll Guide USA – New Jersey
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Key Facts
- Capital
- Trenton
- Date format
- mm/dd/yyyy
- Currency
- United States Dollar (USD)
- VAT
- the standard rate is 6.625%
Contributions
Employers
- Unemployment Insurance (State)
- Unemployment (State) - 0.4% to 5.4% (Maximum taxable wages is 36,200 USD)
- Unemployment- New Employer (State)
- Unemployment- New Employer (State) - 2.8%
- Disability Insurance (State)
- Disability Insurance (State) - 0.10% (Maximum taxable wages is 36,200 USD)
- New Disability Insurance Rate (State)
- New Disability Insurance Rate (State) - 0.5%
- Family Leave Insurance (State)
- Family Leave Insurance (State) - 386.96 USD
- FICA Social Security (Federal)
- FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
- FICA Medicare (Federal)
- FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
- FUTA Unemployment (Federal)
- FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
- Total Employment Cost
- Total Employment Cost - 14.15% to 19.80%
Employees
- FICA Social Security (Federal)
- FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
- FICA Medicare (Federal)
- FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
- New Unemployment Insurance
- New Unemployment Insurance - 0.425%
- Disability Insurance (State)
- Disability Insurance (State) - 0.47% (maximum taxable wages is 138,200 USD)
- Family Leave Insurance (State)
- Family Leave Insurance (State) - 0.28%
- Total Employee Cost
- Total Employee Cost - 8.825% to 9.725%
Minimum Wage
- Minimum Wage
- The minimum wage in New Jersey is 10.30 to 12 USD per hour.
Payroll
- Payroll Cycle
- Monthly, Bi-Monthly
- 13th Salary
There are no statutory laws on 13th salary.
Income Tax
- Employee Income Tax (1) Single Filer (Federal)
- $0 - $9,875 = 10%
- Employee Income Tax (2) Single Filer (Federal)
- $9,876 - $40,125 = 12%
- Employee Income Tax (3) Single Filer (Federal)
- $40,126 - $85,525 = 22%
- Employee Income Tax (4)Single Filer (Federal)
- $85,526 - $163,300 = 24%
- Employee Income Tax (5) Single Filer (Federal)
- $163,301 - $207,350 = 32%
- Employee Income Tax (6) Single Filer (Federal)
- $207,350 - $518,400 = 35%
- Employee Income Tax (7) Single Filer (Federal)
- Over $518,400 = 37%
Employee Income Tax (State)
- Employee Income Tax (State) (1)
- $0 - $20,000 = 1.40%
- Employee Income Tax (State) (2)
- $20,000 - $35,000 = 1.75%
- Employee Income Tax (State) (3)
- $35,000 - $40,000 = 3.50%
- Employee Income Tax (State) (4)
- $40,000 - $75,000 = 5.525%
- Employee Income Tax (State) (5)
- $75,000 - $500,000 = 6.37%
- Employee Income Tax (State) (6)
- $500,000 - $1,000,000 = 8.97%
- Employee Income Tax (State) (7)
- Over $1,000,000 = 10.75%
Working Hours
- General Working Hours
40 hours per week, eight hours per day.
- Overtime
Overtime is paid at a rate of 150% of the regular pay in excess of 40 hours per week.
Leave
- Paid Time Off
Employers are not required to provide paid time off.
- Public Holidays
12 public holidays.
- Sick Days
All forms of employees must be provided with at least 40 hours of annual sick leave.
- Maternity Leave
New Jersey’s Temporary Disability Leave provides non-exempt employees with four weeks of paid leave prior to delivery and six weeks after the delivery (or up to eight weeks after a Caesarean delivery).
- Paternity Leave
See parental leave.
- Parental Leave
The New Jersey Family Leave Act entitles certain employees to take up to 12 weeks of leave in a 24-month period.
Termination
- Termination Process
Both the employee and employer are allowed to terminate the employment at any given time without a reason.
- Notice Period
Notice of termination is only required for mass layoff. 90 days’ notice should be given for such circumstances.
- Severance Pay
Severance pay is one week of pay for every year of employment. Implementation of the law has been delay until 90 days after COVID-19 State of Emergency has been lifted.
- Probation Period
Six months.
Visa
- Employment Visa
In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.