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.