New Jersey Paycheck Calculator

With thousands of employers and more than 195,000 active employees in New Jersey, this state has one of the most active taxpayer lists. More than 177,506 new businesses have been registered in New Jersey as of 2022.

Taxes can therefore be overwhelming for you. Our New Jersey paycheck calculator will help them calculate the payable taxes. Plus, it will assist you with making your check stub.

Registering a Business in New Jersey

Starting a business in New Jersey is easy; however, it also depends on your business's nature and structure. You can start by finding a unique business name; for this, you can consult your business agent.

The second step is to get an EIN (employer identification number) from the IRS. Gather all the necessary documents for your business and register them with the Division of Revenue. You’ll also need to pay $125 as a registration fee.

New Jersey Tax Overview

It doesn’t matter if you are a permanent resident of New Jersey; you must pay taxes as long as you earn from a source in New Jersey.

• The state income tax in NJ ranges between 1.40% - 10.75%, and the local payroll tax rate is only 1%. Furthermore, federal taxes are payable at a 22% rate.
• The sales tax rate in New Jersey is 6.625%, and the max local sales tax rate is 3.313%. If you pay both of them, the combined average sales tax rate is 6.60%.
• A form W-2 is required, which contains data about employee wages to file taxes. In addition, employers must provide a W-3 form containing details about total and taxable wages and tax withheld.
• If you earn income from other sources besides your employer, add them in form-1099 before submitting the tax return.

Taxable Base Wage

Every individual has a specific amount in their income known as a taxable base wage that the IRS uses to calculate the person’s Social Security tax. As of 2023, the taxable base wage in New Jersey is $1,465.

SUTA Rates

State unemployment tax benefits employees who are not working with their employer anymore. It is a type of payroll tax that employers must pay to the state. New Jersey’s unemployment tax in 2023 is 0.425%.

FUTA Rates

Employers are responsible for paying this tax as compensation for the workers who have lost their jobs. FUTA (Federal Unemployment Tax) rate is 0.6% to 6.4% of the first $7,000 of each employee’s taxable income. 

FICA Taxes

FICA is a U.S. payroll tax to fund the Social Security and Medicare programs The Social Security tax rate is 6.20%, whereas the Medicare tax rate is 1.45%. The unemployment insurance tax is 0.18%. In addition, the disability insurance tax and family leave insurance tax is 0.08% and 0.04%, respectively.

Payroll Taxes Withholding

In New Jersey, the withholding tax ranges from 1.5% to 7%, and all employers must provide a report for these taxes.

New Jersey Paycheck Calculator

With a free Newark paycheck calculator, you can calculate the take-home salary within minutes. It automatically deducts federal, state, local, FICA, and state insurance taxes.

Pre-tax deductions require details of 401k, medical insurance, HSA, FSA, and LTD: long-term disability insurance, and after post-tax deductions, it calculates the take-home salary.

New Jersey Hourly Paycheck Calculator

An hourly paycheck calculator calculates your gross income using your per-hour wage rate and the number of hours you worked. Multiple your per-hour wage with total working hours, and you’ll get your monthly gross salary. Deduct all the taxes and adjustments from the gross pay to get your net income.

New Jersey Child Support Calculator

To calculate child support in New Jersey, parents must combine their most recent salary mentioned in their tax returns. After that, they must provide 17% to 35% of their income based on the number of children.

For example,

1. One child will get 17% of their income,
2. 25% for two kids,
3. 29% for three,
4. 31% for four,
5. 35% for five or more children. 

So, if a couple has three kids and a $100,00 annual income, they’ll pay $29,000 for the three children in child support.

Labor Laws in New Jersey

The minimum wage rate in New Jersey is $5.26 - $17.13, and the average working hours per week are 40. In overtime, the employer must pay 1.5 times the regular hourly wage rate.

Child labor is strictly prohibited in New Jersey and can result in jail and fines. Employees can earn a paid sick leave of up to 40 hours per year.

New Jersey Paystub Generator

With a New Jersey paystub generator, you can get all the related information like gross pay, taxes, deductions, and net pay in less than a minute. To avoid fake pay stubs, use an error-free pay stub generator like Real Check Stubs. This online paystub generator makes the entire process easy and hassle-free.

New Jersey Tax Resources

NJ Division of Taxation

• Website: https://www.state.nj.us/treasury/taxation/

• Phone: +1 800-323-4400

• Address: 3 John Fitch Way, Trenton, NJ 08611, United States

Frequently Asked Questions (FAQs)

• How much tax must I pay in New Jersey?

Using the Jersey City paycheck calculator, you can calculate the taxes you must pay on your gross income. It can be anywhere from 1.40% - 10.75%.

• Are paycheck calculators reliable?

If there are no special exemptions in your tax return, an online paycheck calculator is a reliable way to find the take-home salary.

• Can I use the New Jersey paycheck calculator for free?

You can find many New Jersey paycheck calculators online for free, which are pretty reliable for finding the net income.

Conclusion

While living in the state of New Jersey, to check your take-home salary you can use this article. For instance, you can use the Atlantic City paycheck calculator the same way as mentioned here.