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REMOTE EMPLOYEES

Hiring a remote employee in New Jersey

Your company is in another state and one employee lives and works from home in New Jersey. Which state's taxes apply, unemployment, paid leave and New Jersey's employer rules, each with its official source.

Facts checked on October 5, 2026 against the official sources listed at the end of this page. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

New Jersey at a glance

Income tax
New Jersey withholding
Reciprocity
With Pennsylvania
Unemployment
$44,800 wage base, 2.8% new employer
Paid leave
New Jersey Temporary Disability Insurance (TDI) and New Jersey Family Leave Insurance (FLI)
New hire report
Within 20 days

Which state's taxes apply

Work state
New Jersey taxes wages for work done in New Jersey. Withhold New Jersey income tax on the employee's wages.Source: NJ Division of Taxation, NJ-WT New Jersey Income Tax Withholding Instructions (September 2025) (PDF) (opens in a new tab), checked October 5, 2026
Withholding form
Form NJ-W4Source: NJ Division of Taxation, Form NJ-W4 (1-21) Employee's Withholding Allowance Certificate (PDF) (opens in a new tab), checked October 5, 2026
Reciprocity
If your office is in Pennsylvania: New Jersey residents working there are withheld for New Jersey, with REV-419, Employee's Nonwithholding Application Certificate.Source: PA Department of Revenue, PA Personal Income Tax Guide: Gross Compensation (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware or New York, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in New Jersey for the employee's convenience. Whether the Connecticut rule reaches New Jersey residents: not confirmed.Source: Connecticut DRS, IP 2026(1), Connecticut Employer's Tax Guide, Circular CT (PDF) (opens in a new tab), checked October 6, 2026; Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in New Jersey
New Jersey sets no day count before a nonresident's wages for work there are withheld.Source: NJ Division of Taxation, NJ-WT New Jersey Income Tax Withholding Instructions (September 2025) (PDF) (opens in a new tab), checked October 6, 2026

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • New Jersey: all wages.

No New York withholding: the employee does no work in New York.

Unemployment

New Jersey: the employee works from home there, so the work is localized in New Jersey.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in New Jersey, so the work is localized in New Jersey: pay New Jersey unemployment tax, not your company state's.

Agency
New Jersey Department of Labor and Workforce Development, Division of Employer AccountsSource: NJDOL Division of Employer Accounts, How and When to Register as an Employer (opens in a new tab), checked October 5, 2026
Wage base
$44,800 Indexed $46,400 from January 1, 2027Source: NJDOL Division of Employer Accounts, Rate Information, Contributions, and Due Dates (opens in a new tab), checked October 5, 2026
New employer rate
2.8% 2.8% for the first three calendar years (2.6825% UI plus 0.1175% Workforce Development/Supplemental Workforce Funds), on the first $44,800 Surcharges includedSource: NJDOL, Unemployment Insurance Contribution Rates July 1, 2026 - June 30, 2027, Table C (PDF) (opens in a new tab), checked October 5, 2026

Open the account: New Jersey payroll tax registration

New Jersey Temporary Disability Insurance (TDI) (opens in a new tab)

Status
ContributingSource: NJDOL Division of Temporary Disability and Family Leave Insurance, Information for Employers (2026 Program Contributions) (opens in a new tab), checked October 5, 2026
Total rate
0.69% New employer totalSource: NJDOL Division of Temporary Disability and Family Leave Insurance, Information for Employers (2026 Program Contributions) (opens in a new tab), checked October 5, 2026
Employee share
0.19%Source: NJDOL Division of Temporary Disability and Family Leave Insurance, Information for Employers (2026 Program Contributions) (opens in a new tab), checked October 5, 2026
Employer share
New employer 0.5% 0.1% to 0.75% once rated, on the first $44,800Source: NJDOL Division of Employer Accounts, Rate Information, Contributions, and Due Dates (opens in a new tab), checked October 5, 2026
Small employers
NoneSource: NJDOL Employer Handbook, Temporary Disability and Family Leave Insurance (opens in a new tab), checked October 5, 2026

New Jersey Family Leave Insurance (FLI) (opens in a new tab)

Status
ContributingSource: NJDOL Division of Temporary Disability and Family Leave Insurance, Information for Employers (2026 Program Contributions) (opens in a new tab), checked October 5, 2026
Total rate
0.23%Source: NJDOL Division of Temporary Disability and Family Leave Insurance, Information for Employers (2026 Program Contributions) (opens in a new tab), checked October 5, 2026
Employee share
0.23%Source: NJDOL Division of Temporary Disability and Family Leave Insurance, Information for Employers (2026 Program Contributions) (opens in a new tab), checked October 5, 2026
Employer share
NoneSource: NJDOL Division of Temporary Disability and Family Leave Insurance, Information for Employers (2026 Program Contributions) (opens in a new tab), checked October 5, 2026
Small employers
NoneSource: NJDOL Division of Temporary Disability and Family Leave Insurance, Information for Employers (2026 Program Contributions) (opens in a new tab), checked October 5, 2026

Register before the first payroll: the steps are on New Jersey payroll tax registration.

New Jersey employer rules

Employment law applies where the employee works, so these follow the employee into New Jersey.

Final pay
Fired: Next regular payday Quit: Next regular paydaySource: NJDOL Wage and Hour Compliance, FAQs for Employers (opens in a new tab), checked October 5, 2026
Pay frequency
At least twice a month on regular paydays; monthly for certain executive, supervisory or other special classes on a regular scheduleSource: NJDOL Wage and Hour Compliance, FAQs for Employers (opens in a new tab), checked October 5, 2026
Pay notice
At hire, tell employees their rate of pay and regular payday, and notify them of changes to either before they take effect. Also give form MW-400 at hire (the employer's duty to keep and report wage, benefit and tax records).Source: NJDOL, Abstract Relating to Payment of Wages, MW-17 (4/22) (PDF) (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the date of hire.Source: New Jersey Child Support Employer Services Portal, Reporting Fundamentals (opens in a new tab), checked October 5, 2026
E-Verify
No state E-Verify mandate for private employersSource: NJDOL Employer Handbook, Employer Taxes and Wage Reporting (opens in a new tab), checked October 5, 2026
Sick leave
Paid sick leave required, from the first employee.Source: NJDOL, Earned Sick Leave (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in New Jersey, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on New Jersey

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it. State paid leave contributions are withheld, too.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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