Congratulations on your decision to become a new employer in New Jersey! You will need a few things in place before you run your first payroll. For New Jersey employer registration help, check out our partner, CorpNet.
Federal and State Tax Accounts
Federal Tax Accounts:
Apply for an EIN
Apply for an Employer Identification number (also known as an EIN or FEIN) if you don’t already have one. The simplest (and preferred way) is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN.”
Enroll in EFTPS
Although it is not required, we recommend that you register for this federal tax paying system. Your EFTPS (Electronic Federal Tax Payment System) account will be helpful for you to make tax payments online or view whatever tax filings that have been made on your behalf by Patriot.
To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of New Jersey Tax Accounts
Register Your Business With the State of New Jersey
You can register online at the New Jersey Online Business Filing and Registration Service.
Using this registration will allow you to file for state income taxes (SIT), employer unemployment insurance (SUI) and employer disability insurance (SDI).
Get Your NJ SUTA Rate
The New Jersey new employer SUTA rate is 2.8% for July 1, 2025 through June 30, 2026.
For your information, there is also an employer Workforce Development/Supplemental Workforce Fund rate of 0.1175% for UI, Workforce Development/Supplemental funds. However, as a Patriot customer, you do not need to enter this in your tax account settings, as they are automatically calculated for you. To learn more about new employer rates, visit the NJ Department of Labor and Workforce Development.
There is also a “worker rate” which employees in New Jersey pay as a contribution to the UI and Workforce Development/Supplemental Workforce fund which does not need to be entered in the software. This is automatically calculated.
All New Jersey new employers (except successors) are assigned new employer rates for the first three calendar years after which a calculated rate is assigned based on employment experience.
To learn more about SUTA read our article, “What Is SUTA Tax?”
Get Your NJ SDI Rate
New employers in New Jersey will use an SDI (aka TDI) rate of 0.5% from July 1, 2025 through June 30, 2026.
For your information, there is typically a worker contribution rate for disability also. However, the 2026 worker disability insurance rate is 0.19%. And as a Patriot customer, you do not need to enter in worker disability insurance, as it is calculated automatically for you. To learn more about the NJ Disability insurance rates, visit the NJ Department of Labor and Workforce Development.
You will then receive an experience rating for each subsequent year you are in business.
For more information, read, “What Is State Disability Insurance?”
Register With Local Tax Agencies
The city of Newark imposes both payroll taxes and employer taxes, and you will need to register your business if you are affiliated in anyway with the city.
New employers can register by filling out a payroll tax registration form if you are subject to the Newark payroll tax.
Contact the City of Newark for more information.
State-mandated Requirements:
Sign up for Workers’ Comp Insurance
You must have workers’ comp insurance if you have at least 1 employee in New Jersey. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in New Jersey here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, ERGO NEXT Insurance. You can get a free quote with ERGO NEXT here.
Sign Up for State Disability Insurance
New Jersey requires most employers to have Disability Insurance.
Insurance policies can be obtained through the state (via a payroll tax from employee wages) or a private insurance plan. Visit the state’s website for more information.
Offer a Qualifying Retirement Plan
New Jersey requires that employers with 25 or more employees who have been in business for at least two years must enroll in New Jersey’s Secure Choice Savings Plan or offer another retirement plan.
Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.
Setting Up Your New Employee:
Fill Out Form I-9
Have your employees fill out the required Form I-9.
You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “Form I-9 In a Nutshell” and “What Should Be in an Employee File?”
Have Employee Fill Out Federal Form W-4
Employees need to fill out Form W-4, Employee’s Withholding Certificate for federal income taxes.
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?”
Have Employee Fill Out State Form NJ W-4
Form NJ W-4 is the New Jersey employee withholding allowance certificate for state income taxes (SIT).
Note: Employees should fill out the Form NJ W-4 and give to their employer.
What do rate codes mean in NJ? Rate codes are specific to the NJ W-4 withholding as seen on the NJ-W-4 consisting of codes, A, B, C, D and E. See page 2 of the NJ W-4 for more information.
What if an employee doesn't fill out the NJ W-4 for employers?
Per the NJ W-T The NJ-WT (New Jersey's employer withholding instructions) says: "If your employee does not return Form NJ-W4, you should use the marital status and number of exemptions from that employee's federal Form W-4 to determine the amount of tax to withhold."That federal filing status then maps to an NJ rate table the same way the NJ-W4 does:
Rate A — Single, or Married/Civil Union filing separately
Rate B — Married/Civil Union filing jointly, Head of Household, or Qualifying Widow(er)/Surviving CU partner
If the employee has no certificate on file at all — no NJ-W4 and no federal W-4 — the federal default kicks in: treat them as single with no adjustments/allowances, which lands them in Rate A with zero exemptions.
Report New Hire
New Jersey employers need to report new hires within 20 days of hire or rehire.
You can report online through the New Jersey New Hire Directory.
Meet Minimum Wage Requirements
New Jersey employers with six or more employees must pay employees a minimum wage of $15.92 per hour for 2026. Seasonal and small employers with fewer than six employees must pay $15.23 per hour for 2026.
By law you are required to post the minimum wage poster where your employees can read it.
Obtain Labor Law Posters
Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!
Once you have all the necessary information, you can set up your business payroll.
You will want to keep all payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Check with federal and state governments for additional requirements for employers.