New Jersey Nanny and Payroll Taxes

New Jersey Nanny Taxes

Find the specifics of the nanny tax in New Jersey

New Jersey is another state that has added several different payroll taxes that you will have worry about. In addition to the common state unemployment insurance, New Jersey also charges taxes for a Health Care Subsidy Fund, State Disability Insurance, and the Workforce Development Fund. Check out the guide below or head to the source at the New Jersey Employer Handbook.

New Jersey Minimum Wage

Keep in mind you must meet the minimum wage standards for New Jersey:

  • 2013: $7.25 per hour
  • 2014: $8.25 per hour

The New Jersey Payroll Taxes

New Jersey is a little unique in that it charges a portion of the various payroll taxes to the employee as well as the employer. The employee portion is withheld from your nanny’s wages and remitted to the state when you make your employer tax payments.

Tax Taxable Wages Per Year Tax Rate Maximum Tax
Unemployment Insurance – Employer
First $31,500
New employers start at 3.4% for 2014
$1,071 at the 3.4% rate.
Unemployment Insurance – Nanny
First $31,500
0.425% $134
State Disability Insurance – Employer First $31,500 0.5% $158
State Disability Insurance – Nanny First $31,500 0.38% $113
Family Leave Insurance – Nanny First $31,500 0.1% $32

Wage thresholds for New Jersey state nanny (payroll) taxes

Your state obligations begin once your nanny is paid cash wages of $1,000 or more in a calendar year.

New hire reporting deadline is 15 days

You can find more information on how to report you new hire at the New Jersey Division of Revenue. You can download the new hire reporting form here.

Wage reporting and a tax payments

As a domestic employer, you are able to file and pay your taxes annually using the online form NJ-927-H

New Jersey Workers’ Compensation Insurance

New Jersey does require household employers to purchase worker’s compensation insurance. You can find out more information from the State’s Division of Workers’ Compensation website.

New Jersey Nanny Tax  Calculator

To get an estimate of what your payroll taxes will be in New Jersey, use the calculator below.