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, file, and pay: click here
*Registration is only required once.

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

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.

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.

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.

Online registration is available at: Register/file/pay

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.

Register/file/pay

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.

Jersey City Payroll Tax Unit
280 Grove Street
Room 101
Jersey City, NJ 07302

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

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 [email protected] if you have further questions. Thank you.