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:
• 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;
• 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).