Review your records and any computer programs that use this information. The NJ Sales Tax rate remains at 6.625% in 2023. This will relieve your company of withholding tax responsibility. For more information, please reference Sax’s alert on this topic.Īs a reminder, if your company uses a PEO, make sure that the organization has received the IRS PEO Certification. Make sure to follow up on the specific requirements.

New Jersey requires businesses to provide paid sick time to employees. Please review your specific state’s requirements to determine your minimum wage responsibilities. The Connecticut minimum wage increased to $15.00 on July 1, 2023, and will change to $15.69 on January 1, 2024. New York will continue to mandate different minimum wages depending on the location and type of work. Locally, the New Jersey minimum wage will increase from $12.93 to $13.93 for under five employees, and for six or more employees, it will increase to $15.13. There will be changes to the minimum wage in many states in 2024. The maximum wages subject to New York unemployment tax will increase from $12,300 to $12,500 in 2024. There will no longer be an option to call in the tax payments. This will result in the maximum tax increasing from $94.08 to $145.26.Īs a reminder, New Jersey will only accept payroll tax payments using an online payment method. The wage base for the employee will increase from $156,800 to $161,900, and the tax rate will increase from. The wage base and rate will both change in 2024. This will result in the maximum tax remaining unchanged at $0.00. The base for disability for the employee will increase from $156,800 to $161,400, and the tax rate will remain unchanged at. The maximum tax will increase from $174.68 to $179.78. The unemployment base for the employee will increase from $41,100 to $42,300 while the rate will remain the same at. The employer rate for these taxes is determined by the State and sent in a notice in July. For more information on state-specific credit reductions, refer to Schedule A of Form 940, which will indicate the previously mentioned states subject to credit reduction for the 2023 filing.įor 2024, the employer base for unemployment and disability increases from $41,100 to $42,300. In California and New York, there is a credit reduction which will result in an effective FUTA tax rate of 1.2% for 2023. In New Jersey, where no credit reduction exists, the effective FUTA tax rate is 0.6% for 2023. The credit and reduced rate are available by filing the Form 9. However, an allowed credit effectively reduces the tax rate to a net of 0.6% for wages paid up to the wage limit of $7,000 (for the majority of states). The current gross FUTA tax rate is 6.0% of taxable wages, to be paid by the employer only.

This additional Medicare tax should be deducted from the employee, at the rate of 0.9%, for all wages (and taxable benefits) paid in excess of $200,000. For payroll tax purposes, the only relevant item is wages, including taxable benefits paid. This is a withholding tax withheld from the employee only and carries no tax requirement for the employer. The tax rate is 1.45% to be withheld from the employee and 1.45% to be paid by the employer.Īn additional Medicare tax is payable over various threshold amounts depending on the filing status reported on the taxpayer’s personal income tax return. Under current law, the tax rate will remain the same at the rate of 6.2% to be paid by both the employer and the employee. The wage base will increase from $160,200 to $168,600. Below is an overview of the tax rates, taxable wage bases, and other updates that will impact your payroll processes when January 1 arrives.įederal Insurance Contributions Act (FICA) In order to calculate payroll taxes accurately and effectively for your company and employees next year, it is important to understand the new and existing compliance requirements in effect for 2024. In General News, News / Events, Tax Updates Financial Statement Audits, Review & Compilations.

New york unemployment tax form