Tax rate used in calculating New Jersey state tax for year 2016 State Abbreviation: | NJ
| State Tax Withholding State Code: | 34
| Acceptable Exemption Form: | NJ-W4
| Basis For Withholding: | State or Federal Exemptions
| Acceptable Exemption Data: | S, M, C, D, E /Number of Exemptions
| TSP Deferred: | No
| Non-Federal 401(k) Deferred: | Yes
| Special Coding: | Determine the Total Number Of Allowances Claimed field as follows:
| | First Position -
| | If Item 3 of the NJ-W4 Contains: | Enter: | | A
| S | | B
| M | | C
| C | | D
| D | | E
| E | | If Item 3 of the NJ-W4 is Blank
and if the Status on Line 2 Is: | Enter: | | Single
| S | | Married/Civil Union
Couple Joint
| M | | Married /Civil Union
Couple Separate
| S | | Head of Household
| M | | Surviving Spouse/Surviving
Civil Union Partner
| M | | Second and Third Positions - Enter the total number of exemptions claimed in Item 4 of the NJ-W4. If less than 10, precede with a zero.
| Additional Information: | If a state income tax certificate has not been processed or if a valid state exemption code is not present, the Federal exemptions will be used in the computation of state tax.
|
Withholding Formula >(New Jersey Effective 2016)< - Subtract the nontaxable biweekly non-Federal 401(k) contribution from the gross biweekly wages to obtain the adjusted gross biweekly wages. Note: Do not subtract the biweekly Federal Thrift Savings Plan contribution.
- Multiply the adjusted gross biweekly wages computed in step 1 by 26 to obtain the annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute the taxable income.
Exemption Allowance = $1,000 x Number of Exemptions - Apply the taxable income computed in step 3 to the following table to determine the annual New Jersey tax withholding.
Tax Withholding Table
Single or Married/Civil Union Couple- Filing Separately
(Rate Table A) | If the Amount of
Taxable Income Is: | The Amount of New Jersey
Tax Withholding Should Be: |
Over:
| But Not
Over: | | | | Of Excess
Over: | $ 0
| $ 20,000
| $ 0
| plus
| 1.5%
| $ 0
| 20,000
| 35,000
| 300
| plus
| 2.0%
| 20,000
| 35,000
| 40,000
| 600
| plus
| 3.9%
| 35,000
| 40,000
| 75,000
| 795
| plus
| 6.1%
| 40,000
| 75,000
| >500,000< | 2,930
| plus
| 7.0%
| 75,000
| >500,000
| and over
| 32,680
| plus
| 9.9%
| 500,000< | Married/Civil Union Couple - Filing Jointly or Head of Household
or
Surviving Spouse/Surviving Civil Union Partner
(Rate Table B) | If the Amount of
Taxable Income Is: | The Amount of New Jersey
Tax Withholding Should Be: |
Over:
| But Not
Over: | | | | Of Excess
Over: | $ 0
| 20,000
| $ 0
| plus
| 1.5%
| $ 0
| 20,000
| 50,000
| 300
| plus
| 2.0%
| 20,000
| 50,000
| 70,000
| 900
| plus
| 2.7%
| 50,000
| 70,000
| 80,000
| 1,440
| plus
| 3.9%
| 70,000
| 80,000
| 150,000
| 1,830
| plus
| 6.1%
| 80,000
| 150,000
| >500,000< | 6,100
| plus
| 7.0%
| 150,000
| >500,000
| and over
| 30,600
| plus
| 9.9%
| 500,000< | Optional Rate Table C | If the Amount of
Taxable Income Is: | The Amount of New Jersey
Tax Withholding Should Be: |
Over:
| But Not
Over: | | | | Of Excess
Over: | $ 0
| $ 20,000
| $ 0
| plus
| 1.5%
| $ 0
| 20,000
| 40,000
| 300
| plus
| 2.3%
| 20,000
| 40,000
| 50,000
| 760
| plus
| 2.8%
| 40,000
| 50,000
| 60,000
| 1,040
| plus
| 3.5%
| 50,000
| 60,000
| 150,000
| 1,390
| plus
| 5.6%
| 60,000
| 150,000
| >500,000< | 6,430
| plus
| 6.6%
| 150,000
| >500,000
| and over
| 29,530
| plus
| 9.9%
| 500,000< | Optional Rate Table D | If the Amount of
Taxable Income Is: | The Amount of New Jersey
Tax Withholding Should Be: |
Over:
| But Not
Over: | | | | Of Excess
Over: | $ 0
| $ 20,000
| $ 0
| plus
| 1.5%
| $ 0
| 20,000
| 40,000
| 300
| plus
| 2.7%
| 20,000
| 40,000
| 50,000
| 840
| plus
| 3.4%
| 40,000
| 50,000
| 60,000
| 1,180
| plus
| 4.3%
| 50,000
| 60,000
| 150,000
| 1,610
| plus
| 5.6%
| 60,000
| 150,000
| >500,000< | 6,650
| plus
| 6.5%
| 150,000
| > 500,000
| and over
| 29,400
| plus
| 9.9% | 500,000< | Optional Rate Table E | If the Amount of
Taxable Income Is: | The Amount of New Jersey
Tax Withholding Should Be: |
Over:
| But Not
Over: | | | | Of Excess
Over: | $ 0
| $ 20,000
| $ 0
| plus
| 1.5%
| $ 0
| 20,000
| 35,000
| 300
| plus
| 2.0%
| 20,000
| 35,000
| 100,000
| 600
| plus
| 5.8%
| 35,000
| 100,000
| >500,000< | 4,370
| plus
| 6.5%
| 100,000
| >500,000
| and over
| 30,370
| plus
| 9.9%
| 500,000< | - Divide the annual New Jersey tax withholding by 26 to obtain the biweekly New Jersey tax withholding.
|
in house payroll tax solution for New Jersey small businesses here.
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