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New Jersey has mandatory TDI and FLI (split employer/employee funding), one of the highest SUI wage bases in the US ($42,300), a $15.13/hour minimum wage, and mandatory earned sick leave. Rippling handles NJ Division of Taxation, NJDOL, TDI, and FLI filings.
New Jersey is a major Mid-Atlantic economy — the most densely populated state in the US — with strengths in pharmaceuticals (major global HQs in the pharma corridor), financial services, technology, logistics, and professional services. New Jersey payroll is among the most complex in the US: a progressive income tax (top rate 10.75%), mandatory TDI (Temporary Disability Insurance) and FLI (Family Leave Insurance) with split employer/employee funding, one of the highest SUI wage bases in the country ($42,300 in 2024), mandatory earned sick leave (40 hours/year), and a minimum wage on a phased increase path ($15.13/hour in 2024). Newark, Jersey City, and the Route 1/Route 9 tech and pharma corridors are primary employer markets.
Rippling’s New Jersey payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| NJ SUI (NJDOL) | New employer 2.8% | On first $42,300 of wages (2024) |
| NJ TDI (employer share) | 0.10% | On first $42,300 of wages (2024) |
| NJ FLI (employer) | 0% in 2024 | FLI is employee-funded in 2024; may vary by year |
| NJ WFDF (Workforce Development) | 0.0425% | On first $42,300 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Mandatory for all employers |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| NJ State Income Tax | 1.4%–10.75% | 7-bracket progressive; top rate 10.75% on income above $1,000,000 |
| NJ TDI (employee share) | 0.26% | On first $42,300 of wages (2024) |
| NJ FLI (employee) | 0.09% | On first $161,400 of wages (2024) |
| NJ UI/WF/SWF (employee) | 0.425% | On first $42,300 of wages (2024) |
| New Jersey Income (Single, 2024) | NJ Rate |
|---|---|
| Up to $20,000 | 1.4% |
| $20,001–$35,000 | 1.75% |
| $35,001–$40,000 | 3.5% |
| $40,001–$75,000 | 5.525% |
| $75,001–$500,000 | 6.37% |
| $500,001–$1,000,000 | 8.97% |
| Above $1,000,000 | 10.75% |
NJ withholding remitted to NJ Division of Taxation. Annual NJ-W-3 reconciliation by February 15.
Final Pay: New Jersey requires final pay on the next regularly scheduled payday. Accrued vacation: NJ Wage Payment Law treats promised vacation as wages if the employer’s policy provides for payout — a clear written forfeiture policy is generally enforceable.
NJ TDI covers an employee’s own non-work-related illness or injury — up to 26 weeks at 85% of wages (capped at $1,055/week in 2024). NJ FLI covers bonding with a new child or caring for a seriously ill family member — up to 12 weeks at 85% of wages. TDI is split-funded: employee pays 0.26% and employer pays 0.10% on the first $42,300. FLI is employee-funded only: 0.09% on the first $161,400. Both are remitted quarterly to NJDOL. Employers may use the NJ state plan or an approved private plan for TDI.
New Jersey’s general minimum wage is $15.13/hour (January 2024). Separate lower tiers apply: seasonal workers and employers with 5 or fewer employees pay $13.73/hour; agricultural workers pay $12.81/hour. Tipped employees receive a direct wage of $5.26/hour (tips must make up the difference to at least $15.13). NJ’s minimum wage adjusts annually.
NJ Earned Sick Leave (effective October 29, 2018) requires all employers — regardless of size — to provide 40 hours of paid sick leave per year. Employees accrue 1 hour for every 30 hours worked. New hires may accrue from day one but cannot use leave until 120 days after hire. Leave can be used for the employee’s own illness, family care, domestic violence, or workplace closure. Rippling tracks NJ sick leave accrual for all NJ employees.
New Jersey’s SUI taxable wage base is $42,300 for 2024 — among the highest in the US. Combined with TDI and FLI contributions on the same or higher wage base, New Jersey has one of the highest total state payroll tax burdens in the country. For a new employer at 2.8%, the maximum annual SUI contribution per employee is approximately $1,184 — before TDI and workforce development contributions.
