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 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;
• Hospital interns;
• 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).
Taxable wage base. For the current taxable wage base, visit http://lwd.dol.state.nj.us/labor/ea/rates/ea2014.html. Wages include both cash and the reasonable value of noncash items (NJ Rev. Stat. Sec. 43:21-19).
Employer tax rates. To find the current tax rate, visit http://lwd.dol.state.nj.us/labor/ea/rates/ea2014.html. New employers pay a certain set percentage. ...

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