New Jersey Employer Guide
We’ve got you covered on the payroll end. Please read carefully the following resources and information to help keep you in compliance with other NJ laws.
Recommended Resource: NJ Employer FAQs
Note: Your New Jersey household payroll taxes are paid on an annual basis by the end of January following the end of the tax year. You can always look at your year-to-date tax summary from the main dashboard in your Nest Payroll app.
All NJ employers are required to maintain workers’ compensation insurance coverage for on-the-job injuries. This insurance is typically provided under your homeowner’s or renter’s insurance policy. You might already be covered, but check with your insurance provider to be sure you are sufficiently covered. You may need to add a rider to your policy depending on the number of hours your employees work each week.
Details: NJ - Dept. of Labor and Workforce Development - Workers' Compensation
Federal law requires that all employers request this form to be completed by the prospective employee. Don’t submit it to anyone, just keep it with your employer records in case of an audit.
I-9 form: https://www.uscis.gov/i-9
W-4 form: https://www.irs.gov/pub/irs-pdf/fw4.pdf
To be sure your employee doesn’t get an unexpected tax bill, or have too much withheld, have them complete a W-4 form when they are hired, or anytime they experience a change in their withholding requirements (marriage, birth of child, additional income, etc.). You can update your employee’s profile in the Nest Payroll app at anytime during the year.
Having an agreement reduces awkwardness and misunderstandings, especially as things come up you just didn’t anticipate. If you don’t have an agreement with your employee, you can download this one and modify for your situation. This one is for a nanny, but you can easily change out the role of the employee, such as for a housekeeper or caregiver, making it work for you.
Additionally, Hand In Hand, a non-profit we love that supports domestic employers + employees, is a great resource for tackling all sorts of challenges that come with household employment, creating a more dignified and respectful workplace for all. Take advantage of their excellent and free sample contracts and guide books.
PAID SICK TIME: REQUIRED BY LAW
Up to 40 hours per year, regardless of full-time or part-time status. This time can be offered upfront, or can be accrued at a rate of 1 hour for every 30 hours worked. For example, if your employee works 20 hours/week, the calculation would be 20 x 52 (weeks) = 1,040, divided by 30 hours = 35 hours earned over one year. Enter 35 into the employee’s “sick hours”. When used, simply enter the paid sick hours when creating a paycheck for the applicable week. Earned sick time also applies to school appointments for parents.
Details: NJ Earned Sick Leave: Frequently Asked Questions and Sick Leave Notice
VACATION TIME or PAID TIME OFF: NOT REQUIRED
Paid vacation time is not required, but it could be an important benefit to offer. If you choose to provide paid vacation, it must be administered uniformly in accordance with the established employment agreement. An individual may have a basis for a claim if the employer fails to adhere to the policy or agreement. Vacation/PTO hours can be entered in the Nest Payroll app when creating a paycheck.
MINIMUM WAGE: REQUIRED BY LAW
All household employees are classified as hourly (non-exempt) and are subject to minimum wage protections. To check if your city has a higher minimum wage requirement than the state, click on the following:
New Jersey- Minimum Wage Poster
The Economic Policy Institute - Minimum Wage Tracker
Also, when you add an employee to the Nest Payroll app, the minimum wage for your city should pop up.
OVERTIME: REQUIRED BY LAW
Overtime of 1.5x the hourly rate for any hours worked over 40 in a week, including for live-in employees. Overtime is not required when work is performed on a holiday.
Details: U.S. Dept. of Labor - Overtime
UPON TERMINATION, PROVIDE THE FOLLOWING FORM TO YOUR EMPLOYEE: REQUIRED BY LAW
Your New Jersey taxes are paid on an annual basis by the end of January following the end of the tax year. You can always look at your year-to-date tax summary from the main dashboard in your Nest Payroll app.
New Jersey New Hire Reports
New Jersey Division of Taxation: Annual filing of the quarterly WR-30 + annual NJ-927H; payment is annual
IRS quarterly estimated tax payments (IRS schedule is: April/June/September/January)
W-2s for all your household employees
Schedule H, signature-ready, that you include with your personal 1040 taxes in April
The information provided on this page is general in nature. This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult an attorney or financial advisor for your specific situation.