New Jersey (NJ) – 2023

New Jersey Effective 1/1/2023 Federal Effective 7/24/2009

Minimum WageNew JerseyFederal
Minimum Wage$14.13$7.25
Minimum Cash Wage (Tipped Employee)$5.26$2.13
Maximum Tip Credit$8.87$5.12
State Income TaxNew JerseyFederal
Wage WithholdingTables
Supplemental Wage / Bonus RateNo provision, but for taxable wages over $500,000 withhold at 9.9%. For taxable wages over $1,000,000 withhold at 11.8%.
Unemployment InsuranceNew JerseyFederal
Maximum 2023 Taxable Earnings (Increased from $39,800 in 2022)$41,100
Employee 2023 Deduction (0.3825%-UI + 0.0425%-Workforce Dev/Supplemental Workforce)0.425%
Maximum 2023 Employee Deduction$174.68
Employer FY2023 Tax Rates (Includes Workforce Dev/Supplemental Workforce)0.6 – 6.4%
Standard FY2023 New Employer Rate (2.9825%-UI + 0.1175%-Workforce Dev/Supplemental Workforce)3.10%
Voluntary Contribution PermittedYes
Disability InsuranceNew JerseyFederal
Maximum 2023 Taxable Earnings Employee (Increased from $151,900 in 2022)$156,800
Maximum 2023 Taxable Earnings Employer (Increased from $39,800 in 2022)$41,100
Employee 2023 Deduction0.00%
Employer FY2023 Tax Rates0.1 – 0.75%
Standard FY2023 New Employer Rate0.50%
Family Leave Insurance – Employee 2023 Deduction0.06%
Family Leave Insurance – Maximum Employee 2023 Deduction$94.06

Federal (FED) – 2023

Minimum WageFederal
Youth Minimum Wage$4.25
Maximum Tip Credit$5.12
Minimum Cash Wage (Tipped Employee)$2.13
Minimum Wage$7.25
Additional Medicare Tax Withholding on Wages > $200,000 (No Employer Match)0.90%
Maximum Taxable EarningsNo Limit
Maximum Taxable Earnings (Increased from $147,000 in 2022)$160,200
Employee / Employer Tax Rate (Unchanged from 2022)6.20%
Normal Net Tax0.60%
Maximum Credit5.40%
Percent of Taxable Wages6.00%
Maximum Taxable Earnings$7,000
Health Savings AccountsFederal
Catch-up Contribution Limit (Employee / Employer) (Unchanged from 2022)$1,000
Family Contribution Limit (Employee / Employer) (Increased from $7,300 in 2022)$7,750
Self-Only Contribution Limit (Employee / Employer) (Increased from $3,650 in 2022)$3,850
Pension PlansFederal
Catch-up Contribution Limit – 401(k) & 403(b) plans (age 50 or older) (Increase from 6,500 in 2022)$7,500
Supplemental Wage / Bonus RatesFederal
Pay over $1 Million (Unchanged from 2022)37%
Flat Rate Withholding Method (Unchanged from 2022)22%

New Jersey State Resources

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