New Jersey (NJ) – 2021
New Jersey
| Minimum Wage | New Jersey | Federal |
|---|---|---|
| Minimum Wage | $12.00 | $7.25 |
| Minimum Cash Wage (Tipped Employee) | 4.13 | $2.13 |
| Maximum Tip Credit | $7.87 | $5.12 |
| State Income Tax | New Jersey | Federal |
| Wage Withholding | Tables | |
| Supplemental Wage / Bonus Rate | No provision, but for taxable wages over $500,000 withhold at 9.9%. For taxable wages over $1,000,000 withhold at 11.8%. | |
| Unemployment Insurance | New Jersey | Federal |
| Maximum 2021 Taxable Earnings (Increased from $35,300 in 2020) | $36,200 | |
| Employee 2021 Deduction (0.3825%-UI + 0.0425%-Workforce Dev/Supplemental Workforce) | 0.425% | |
| Maximum 2021 Employee Deduction | $153.86 | |
| Employer FY2021 Tax Rates (Includes Workforce Dev/Supplemental Workforce) | 0.4 – 5.4% | |
| Standard FY2021 New Employer Rate (2.6825%-UI + 0.1175%-Workforce Dev/Supplemental Workforce) | 2.80% | |
| Voluntary Contribution Permitted | Yes | |
| Disability Insurance | New Jersey | Federal |
| Maximum 2021 Taxable Earnings Employee (Increased from $134,900 in 2020) | $138,200 | |
| Maximum 2021 Taxable Earnings Employer (Increased from $35,300 in 2020) | $36,200 | |
| Employee 2021 Deduction | 0.47% | |
| Employer FY2021 Tax Rates | 0.1 – 0.75% | |
| Standard FY2021 New Employer Rate | 0.50% | |
| Family Leave Insurance – Employee 2021 Deduction | 0.28% | |
| Family Leave Insurance – Maximum Employee 2021 Deduction | $386.96 |
Federal (FED) – 2021
| Minimum Wage | Federal |
|---|---|
| Minimum Wage | $7.25 |
| Minimum Cash Wage (Tipped Employee) | $2.13 |
| Maximum Tip Credit | $5.12 |
| Youth Minimum Wage | $4.25 |
| FICA (MEDICARE) | Federal |
| Maximum Taxable Earnings | No Limit |
| Medicare Rate | 1.45% |
| Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match) | 0.90% |
| FICA (SOCIAL SECURITY) | Federal |
| Maximum Taxable Earnings (Increased from $137,700 in 2020) | $142,800 |
| Employee / Employer Tax Rate (Unchanged from 2019) | 6.20% |
| FUTA (EMPLOYER-PAID) | Federal |
| Maximum Taxable Earnings | $7,000 |
| Percent of Taxable Wages | 6.00% |
| Maximum Credit | 5.40% |
| Normal Net Tax | 0.60% |
| Health Savings Accounts | Federal |
| Self-Only Contribution Limit (Employee / Employer) (Increased from $3,550 in 2020) | $3,600 |
| Family Contribution Limit (Employee / Employer) (Increased from $7,100 in 2020) | $7,200 |
| Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2020) | $1,000 |
| Pension Plans | Federal |
| Contribution Limit – 401(k) & 403(b) plans (Unchanged from 2020) | $19,500 |
| Catch-up Contribution Limit – 401(k) & 403(b) plans (age 50 or older) (Increase from 6,000 in 2019) | $6,500 |
| Supplemental Wage / Bonus Rates | Federal |
| Flat Rate Withholding Method (Unchanged from 2020) | 22% |
| Pay over $1 Million (Unchanged from 2020) | 37% |
New Jersey State Resources
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