--- title: "NJ Payroll Taxes & Filings for Small Employers | MCC" description: "Register as an employer, what comes out of pay, reports and deposits, and how payroll posts to your books. Confirm current rules." url: "https://mcc-solutionsnj.com/bookkeeping/guides/nj-payroll-taxes-and-filings-for-small-employers" --- Bookkeeping guide · Updated October 7, 2026 # New Jersey payroll taxes and filings for small employers Hiring your first employee brings a set of recurring tax tasks. This is an overview of what to expect. Confirm current forms and due dates with the IRS and the NJ Division of Taxation. By [Matthew Coleman](/about), MCC Solutions **Quick answer.** Before paying wages in New Jersey, get an EIN from the IRS and register with the State as an employer for withholding and for unemployment and disability insurance contributions. Keep the account numbers where your payroll service can use them. Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [NJ 1099 contractor rule (ABC test)](/bookkeeping/guides/nj-independent-contractor-rule-abc-test-2026) · [Trial balance explained](/bookkeeping/guides/trial-balance-explained) · [Owner contribution or loan](/bookkeeping/guides/owner-equity-and-capital-contributions) **Free tools:** [True cost of an employee](/bookkeeping/employee-cost-calculator) · [How many sales do I need to break even?](/bookkeeping/break-even-calculator) [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) ## Register as an employer Before you pay wages, get an EIN from the IRS and register with the State of New Jersey as an employer for withholding and unemployment and disability insurance contributions. Keep the account numbers where your payroll service can use them. Hiring in another state? [Employer registration in another state](/bookkeeping/out-of-state-employer-registration). ## What comes out and what you add From each paycheck you withhold federal income tax, Social Security and Medicare, and New Jersey income tax and certain state payroll contributions. As the employer, you also pay your share of Social Security and Medicare, federal and state unemployment taxes, and employer-side state contributions. The exact set depends on your business. ## The reports Employers typically file a federal quarterly return (Form 941) and an annual federal unemployment return (Form 940), and file New Jersey quarterly returns and wage reports. At year end you provide Forms W-2 to employees and file them with the government. A payroll service can prepare and file these, and you remain responsible for accuracy. ## Want us to handle it? We keep payroll records, liability accounts and year-end payroll reconciled with your books. State payroll support is confirmed for your state before we start. **Price:** Free review of your books first, then a written quote before any work starts. [Get a free review and quote](/bookkeeping/#interest) [Payroll and leave tracking in NJ](/bookkeeping/payroll-and-leave-tracking-nj) ## Deposits Withheld taxes are deposited on a schedule that depends on how much you owe. Missed or late deposits are penalized. Set them up as automatic payments through your payroll service. ## How payroll fits in your books Each payroll records gross wages as an expense, employer taxes as an expense, and amounts withheld as liabilities until paid. Reconcile the payroll liability accounts every quarter against your tax filings. When the numbers do not tie out, something is wrong. ## Common mistakes Paying workers as contractors who should be employees. Paying yourself as an owner without understanding what your entity type allows. Forgetting NJ filings because the federal ones were automatic. Using personal funds for tax deposits. ## Worked example with numbers One employee earns $2,000 gross for a pay period. Employee withholdings come out of the check and are held as liabilities until deposited, while the employer also owes its own share of payroll taxes. The company's cost for the period is $2,000 of wages plus employer taxes, not just the $2,000. Record the full payroll, then the deposits that clear the liabilities. Rates, wage bases and due dates change. Take the numbers from the IRS and the NJ Division of Taxation and Department of Labor, or let a payroll service calculate them. ## Check your work Each quarter, tie wages, withholding and employer taxes in your payroll reports to the returns you filed and the deposits you made. Payroll liability accounts should return to zero after each deposit. ## Common questions **Can I run payroll myself?** Yes, with a good payroll service. The risk is in the filings and reconciliations afterward. We can process payroll or just reconcile it. **When do I pay myself through payroll?** Depends on your entity type and tax election. Ask your tax professional before you decide. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) [### Gusto and payroll software Payroll software for New Jersey small employers: what to set up, how payroll flows into your books, and the NJ filings that follow every payroll. Payroll →](/bookkeeping/software/gusto-payroll) More guides - [1099 contractors: a checklist for New Jersey businesses](/bookkeeping/guides/1099-contractors-checklist-for-nj-businesses) - [NJ LLC Annual Report: Due Date, Cost & How to File Online](/bookkeeping/guides/new-jersey-llc-annual-report) - [Chart of accounts for a small business: how to set one up](/bookkeeping/guides/chart-of-accounts-for-small-business) - [What business records to keep, and for how long](/bookkeeping/guides/how-long-to-keep-business-records) Free tool - [Bookkeeping health check](/bookkeeping/health-check) [All guides](/bookkeeping/guides) Reach owners with employees and the people who run their payroll who read this guide: [advertise here](/advertise#employer). Do it yourself ### First Employee Bundle for New Jersey Hiring in New Jersey comes with registrations, postings, payroll filings and a strict test for who counts as a contractor. This lays it out before the first paycheck. [See what's inside ($59)](/toolkits/first-employee-bundle)14-day full refund Course: [Small Business Bookkeeping Basics](/courses/small-business-bookkeeping-basics) ($49) covers chart of accounts, reconciliations, the monthly close, payroll and 1099 basics for owners. It is training with a certificate of completion, not a credential. Excel workbook ### Solopreneur Multi-State Payroll & Tax Calendar Model One workbook for the dates you cannot miss, the payroll math behind them and the cash they will take, for a small employer or a solo owner with a few people. [See what is inside ($39)](/toolkits/payroll-tax-calendar-model) Also in the [Solopreneur Money Toolkit](/toolkits/solopreneur-money-toolkit): 4 products for $99 instead of $146 separately. ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)