PAYROLL TAX

On November 20, 2018, the Municipal Council gave final approval to Ordinance 18-133, creating a payroll tax for Jersey City employers.

For the City of Jersey City W9 Form, click here.

IMPORTANT: Please note that you must register your business AND file a return in order for your payment to be properly recorded.
 
To register: click here              To register by mail: click here
To file and pay: click here      To file/pay by mail: click here
 
The City cannot issue tax advice. It is the obligation of each business to pay the proper payroll tax amount in accordance with the ordinance. If you have further questions, we recommend consulting with a tax professional.

Below are answers to frequently asked questions about the payroll tax.

frequently asked questions

What is the payroll tax?
Per Jersey City Ordinance 18-133, all employers located within Jersey City are subject to a 1% tax on their gross payroll. All tax revenues will support the City of Jersey City public schools.
Are there any exceptions?
Employers with a quarterly gross payroll less than $2,500 are exempt from the payroll tax.

The wages of Jersey City residents are exempt.
In addition, the following are exempt:

a. The government of the United States;
b. The State of New Jersey, or a County, municipality, school district or special district of the State;
c. An interstate agency;
d. An agency or instrumentality of any entity enumerated in subsection a, b, or c. above;
e. Any insurance company formed by authority of another State or foreign country, subject to the provisions of N.J.S.A. 17:32-15;
f. Charitable Organization, as defined in Ordinance 18-133.

Note that the City has the right to request documentation that support these exceptions.
What is the definition of payroll for tax purposes?

Payroll shall mean an amount equal to the total remuneration paid by an Employer to Employers which is subject to Federal income tax withholding by the Employer for Federal income tax purposes for services rendered, other than domestic services in a private residence, if:
 
A.   The services are performed within the City of Jersey City; or
B.   The services are performed outside of the City of Jersey City, but the place from which the services are supervised is in the City of Jersey City.

 
Such amount shall generally be based on the amount reportable by the Employer on its Federal Form 941 and shall include, but not be limited to, all wages, bonuses, commissions, tips, property, the right to receive property, taxable benefits and all other forms of compensation.

How do companies register?
Online registration is available at:
https://www.cognitoforms.com/CityOfJerseyCity1/CityOfJerseyCityNJPayrollTaxRegistration

If your company utilizes a payroll processing service, make sure to complete both the “Business Information” and “Payroll Company” information sections.
When are tax returns and tax payments due?
Returns and payments are due quarterly.

Quarter

Months

Due Date

1

January – March

April 30

2

April –June

July 31

3

July – September

October 31

4

October- December

Jan 31 (following year)


Note that returns and payments are due on or before the due dates. Postmarks are not accepted as payment dates.
What forms of payment will be accepted?
Checks, credit/debit card, and e-checks are accepted. Note that credit card payments assess a 2.20% convenience fee on the total payment amount and e-checks assess a $0.50 convenience fee.
Where should payments be sent?
Jersey City Payroll Tax Unit
280 Grove Street
Room 101
Jersey City, NJ 07302
What locations are “within Jersey City”?
Any business with a Jersey City zip code determines whether businesses are subject to the payroll tax and whether employees are exempt from the payroll tax.
https://tools.usps.com/zip-code-lookup.htm?bycitystate
Can the payroll tax be deducted or withheld from employees’ wages?
No. Pursuant to item 304-21 of Ordinance 18-33, “No Employer shall deduct or withhold any amount from the remuneration payable to an Employee because of the tax imposed by this article”.

FURTHER QUESTIONS?

For more detailed information, please refer to Ordinance 18-133, available here. Updates will be posted shortly. In the meantime, please email payrolltax@jcnj.org if you have further questions. Thank you.
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