Payroll Services in New Jersey Key Terms

Get to know the terminology used by New Jersey payroll services providers

Hiring an external company in New Jersey to perform payroll services can help save time and frustration. Payroll service providers are knowledgeable about tax withholding and deductions, especially those specific to New Jersey. Companies that provide payroll accounting services offer a range of services, so making a choice can be difficult. Getting to know some of the key terminology used in the industry can help to determine the best provider for your business needs, and will ensure that the provider is up to date on New Jersey requirements.

Withholding

In addition to state and federal taxes, employees in New Jersey have other items withheld from their pay. Deductions are taken for New Jersey disability insurance, Workforce Development Tax and state unemployment taxes.

SUTA contribution

All states require employers to pay state unemployment taxes, known as SUTA. In New Jersey, employees pay a portion of the SUTA contribution. Employers' rates vary according to layoff history.

Certificate of Non-Residence

Under an agreement between the states of Pennsylvania and New Jersey, Pennsylvania residents are not required to pay New Jersey Gross Income Tax. To receive the exemption, employees must complete a Certificate of Non-Residence.

Wage and Hour Compliance

The New Jersey Department of Labor's Division of Wage and Hour Compliance administers and enforces New Jersey labor laws. Regulations include minimum wage and wage payment frequency.

Federal forms

Certain forms must be filed each quarter or once a year with the federal government. Federal forms include 941, which is filed quarterly, and Federal forms W2 and W3, which are filed annually.

Online processing

Some payroll services in New Jersey offer online processing. With this option, there is no need to install payroll hardware or software; all information is entered online and processing occurs at the remote company. Access to reports and payroll can be retrieved online at any time.

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