Employer of Record in New Jersey: what it costs in 2026
Every US employer pays the same federal payroll taxes. What changes in New Jersey is the state unemployment charge, whether there is a paid leave contribution and the wage floor. The figures below are for the 2026 tax year and were checked against New Jersey Department of Labor and Workforce Development on 2026-09-05.
New Jersey at a glance
- Unemployment wage base
- $44,800
- New-employer rate
- 2.6825% for the rate year starting 1 July 2026
- Employer paid leave
- Temporary disability costs the employer 0.10% to 0.75%; family leave is employee-paid
- Minimum wage
- $15.92
Employer cost on a $100,000 salary
Statutory employer taxes only. Provider fees, benefits, workers compensation and any bonus sit on top.
| Charge | Basis | Per year |
|---|---|---|
| Social Security | 6.2% of the first $184,500 | $6,200 |
| Medicare | 1.45% of all pay | $1,450 |
| Federal unemployment tax | 0.6% of the first $7,000 after the state credit | $42 |
| State unemployment insuranceNew Jersey | 2.68% of the first $44,800 | $1,202 |
| Total employer taxes | $8,894 | |
Not included in the total
- • Paid leave or disability: Temporary disability costs the employer 0.10% to 0.75% depending on experience, so there is no single rate. Family leave is employee-paid.
Federal floor and New Jersey charges, separated
Open a line to see what makes it up and the source behind it, on the $100,000 salary above.
The same employee at other salaries
| Salary | Federal | New Jersey | Total taxes | Share of salary |
|---|---|---|---|---|
| $60,000 | $4,632 | $1,202 | $5,834 | 9.7% |
| $100,000 | $7,692 | $1,202 | $8,894 | 8.9% |
| $150,000 | $11,517 | $1,202 | $12,719 | 8.5% |
The share of salary falls as pay rises because unemployment tax stops once the wage base is reached, while Medicare keeps running on every dollar.
The federal floor, identical in every state
- Social security
- 6.2% on the first $184,500 of pay
- Medicare
- 1.45% with no cap (a further 0.9% is employee-paid above $200,000)
- Federal unemployment
- 6.0% gross, 0.6% after the full state credit, on the first $7,000
Source: IRS Publication 15 (2026) and the Social Security Administration. Reviewed 2026-09-05. State figures: New Jersey Department of Labor and Workforce Development, reviewed 2026-09-05. This page is general information, not legal or tax advice. See our methodology.
Where these figures come from
Each line says who published the figure and how firm it is. We never blend an official figure with an estimate.
| Figure | Published by | Kind of source | How firm |
|---|---|---|---|
| Unemployment wage base and rate | New Jersey Department of Labor and Workforce Development | Official government figures | Confirmed on the official page |
| Employer paid leave | New Jersey Department of Labor and Workforce Development | Official government figures | Confirmed on the official page |
| Minimum wage | New Jersey Department of Labor and Workforce Development | Official government figures | Confirmed on the official page |
| Federal payroll taxes | IRS Publication 15 (2026) and the Social Security Administration | Official government figures | Confirmed on the official page |
Unemployment wage base and rate
Employer paid leave
Minimum wage
Hiring in New Jersey through a provider
The taxes above are the same whichever provider you use. What differs is the monthly fee and whether the provider is already registered in New Jersey.
Other states we cover in detail
Related
FAQ
On a $100,000 salary the statutory employer cost works out at about $8,894 a year, of which $7,692 is federal and $1,202 is charged by New Jersey. Provider fees, benefits and workers compensation sit on top of that.
New Jersey charges a new employer 2.6825% on the first $44,800 of each employee's pay.
Temporary disability costs the employer 0.10% to 0.75% depending on experience, so there is no single rate. Family leave is employee-paid.
$15.92. A county or city inside the state can set a higher floor, so check the local rate for the exact work location before you set pay.
Yes. Most international providers hold registrations in all 50 states, but registration and the first payroll run in a new state can take a couple of weeks, so confirm the provider is already set up in New Jersey before signing.