New Jersey Unemployment Compensation laws & HR compliance analysis

New Jersey Unemployment Compensation: What you need to know

Virtually all employers are covered by New Jersey's Unemployment Compensation Law and are, therefore, subject to the state unemployment insurance tax (NJ Rev. Stat. Sec. 43:21-1 et seq.). For example, covered employers include:
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• Employers that have paid wages of $1,000 or more in either the current or the preceding calendar year;
• Employers subject to the Federal Unemployment Tax Act (FUTA), unless they are specifically excluded by law;
• Certain agricultural employers;
• Certain employers of domestic help;
• The state of New Jersey and its political subdivisions; and
• Nonprofit schools and church-related schools not incorporated under a church charter (NJ Rev. Stat. Sec. 43:21-19).
The law excludes certain services from coverage, including, for example, services provided by:
• Students working for schools, colleges, or universities;
• Students working for work-study programs;
• Spouses of students working for schools;
• Real estate and insurance salespersons;
• Securities and mutual fund brokers and agents and home-to-home salespersons if paid solely by commission;
• Student nurses;
• Casual employees;
• Musicians, entertainers, actors, etc., working for 10 weeks or less in a calendar year; and
• Certain limousine franchise owners (NJ Rev. Stat. Sec. 43:21-19).
Beginning November 10, 2020, educational employers must report to the state Department of Labor (NJDOL) which employees they expect to return to work after summer or winter break. They must indicate which school employees have “reasonable assurance” that they will return to their jobs, as defined in the law, and which employees are not expected to return.
The employer must inform the NJDOL of ...

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