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.