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Capital City
Trenton
Timezone
EST
(
GMT-5
)
Paid Leave
None
Income Tax
1.4% - 10.75%
Employer Tax
14.4425% + workers comp + state unemployment
Capital City
Trenton
Timezone
EST
(
GMT-5
)
Paid Leave
None
Income Tax
1.4% - 10.75%
Employer Tax
14.4425% + workers comp + state unemployment
New Jersey is home to a highly educated and diverse workforce, particularly in industries like pharmaceuticals, technology, finance, and healthcare, offering businesses access to top talent.
Located near major cities like New York and Philadelphia, New Jersey provides easy access to key markets and transportation hubs, making it an attractive location for businesses seeking regional growth.
New Jersey offers various tax incentives, economic development programs, and a strong infrastructure, making it an appealing choice for companies looking to expand and operate efficiently.
In New Jersey, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race. Here are the key things you need to know about hiring in New Jersey.
Yes, a Federal Employer Identification Number is needed as well as a New Jersey Employer registration number.
Typically 40 hours per week. 8 hours a day for 5 days a week.
Full time employment typically consists of working 40 hours per week.
Not more than 1 year.
As of January 1, 2024, New Jersey's minimum wage is $15.13 per hour for most businesses. Small employers (those with fewer than six employees) and seasonal businesses are required to pay a slightly lower rate of $13.73 per hour.
New Jersey follows the FLSA for overtime regulations. Employees are entitled to 1.5x their regular rate for any hours worked beyond 40 per week. New Jersey does not enforce daily overtime laws.
Overtime exemptions apply if employees:
The federal weekly salary threshold is $684 or $35,568 annually.
The New Jersey Law Against Discrimination (LAD) prohibits discrimination and bias-based harassment based on actual or perceived:
Common payroll cycles include semi-monthly or biweekly.
Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in New Jersey. Understanding the tax obligations for both employers and employees is crucial when operating in New Jersey's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in New Jersey. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.
New Jersey employers pay Unemployment Insurance (0.5% - 5.8% on the first $41,100 of wages) and contributions for Temporary Disability and Family Leave Insurance.
Employees in New Jersey contribute to TDI (0.47%), FLI (0.28%), and state unemployment insurance (0.425%), plus federal Social Security and Medicare taxes.
In Georgia, the deadline for filing individual state income tax returns aligns with the federal deadline, typically on April 15. If April 15 falls on a weekend or federal holiday, the deadline is extended to the next business day.
Employers in New Jersey must withhold state income tax based on employee earnings and filing status. The Unemployment Insurance (UI) tax rates vary between 0.5% and 5.8% on the first $41,100 of wages. Employers also need to withhold contributions for Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI). Reports should be filed quarterly using Form NJ-927.
The RetireReady NJ program is a state-mandated Individual Retirement Account model. Under this program, employers who do not currently offer a retirement program to their employees may be required to offer the RetireReady NJ program. It is a state-run IRA program for private sector workers who do not have a retirement plan available to them at work.
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No, vacation leave is not mandatory in New Jersey.
Below are the mandatory leave entitlements for full-time employees in New Jersey.
No laws requiring paid time off or paid vacation time.
Maternity leave in New Jersey is covered by the Family Leave benefit and Temporary Disability Leave benefit. New mothers can receive cash benefits from the Temporary Disability program if they need to stop working before the birth of their child and while recovering thereafter. New mothers can also claim from the federal Family Leave benefit after the recovery period to bond with their babies during the first year.
Fathers can make use of the New Jersey Family Leave program. This leave provides the employee with up to 12 consecutive weeks paid leave to bond with a new child.
Sick leave is governed by the New Jersey Earned Sick Leave. Employees accrue paid sick leave as 1 hour for every 30 hours worked. A maximum of 40 hours sick leave may be accrued. Employers must give employees written notice of their right to earned sick leave and the details of the law. Notice must be in the employee's primary language if available on the NJDOL website.
This benefit must be made available to all employees regardless of how they are paid. It includes full-time, part-time, temporary and seasonal workers.
The Uniformed Services Employment and Reemployment Rights Act (USERRA) provides protections of up to five years for uniformed service, reinstatement to the previous position and prohibition against employment discrimination based on military service.
Members of the New Jersey Organized Militia:
In New Jersey, jury duty is a civic responsibility required of all eligible residents. Employers are not required to pay employees during their time serving on jury duty, but they cannot fire, retaliate, or threaten an employee who is serving on jury duty.
The NJFLA (New Jersey Family Leave Act) provides up to 12 weeks of unpaid leave within a 24-month period for employees to bond with a newborn, newly adopted child, or a child placed through foster care.
The New Jersey Paid Family Leave program, also known as Temporary Disability Insurance (TDI), provides partial wage replacement for workers who take time off to bond with a newborn or newly adopted child. TDI provides up to 6 weeks of benefits within a 12-month period.
Voting leave is not mandatory in New Jersey, though employers cannot influence employees' voting decisions. Employers are not legally required to provide leave for voting, though some may choose to.
Employees who need leave due to domestic violence or sexual assault can take up to 20 days of unpaid leave. Eligibility requires the employee to have worked at least 1,000 hours in the past 12 months.
Employers in New Jersey are subject to a number of state-mandated benefits and regulations that ensure the well-being of employees. These requirements include provisions for paid family leave, unemployment insurance, and temporary disability benefits, as well as compliance with federal laws like the Family and Medical Leave Act (FMLA).
Competitive benefits are essential for attracting and retaining top talent in New Jersey. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our New Jersey packages include:
In New Jersey, employers' obligations regarding employee health insurance are influenced by both federal and state regulations, primarily determined by the size of the business.
In New Jersey, part-time employees may be eligible for certain benefits under state or federal laws. Examples of benefits that part-time employees are entitled to are:
New Jersey does not require employers to offer a 401(k) plan. However, New Jersey has implemented a state-run retirement savings program called the Secure Choice Savings Program for private employers with 25 or more employees. Employers in New Jersey who do not offer a retirement plan are required to automatically enroll employees in the program, allowing workers to contribute to an IRA (Individual Retirement Account) through payroll deductions. Employees can opt out of this.
New Jersey is an at-will employment state. This means that employers can terminate an employee for any lawful reason, or no reason at all, without prior notice and employees can also resign without reason or notice. However, termination cannot be based on discriminatory reasons, retaliation, or violations of public policy.
New Jersey does not require employers to provide advance notice for termination unless specified in an employment contract or collective bargaining agreement.
Severance is not mandatory in New Jersey unless required by the employment agreement or collective bargaining agreement.
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