The Form NJ-W4, officially titled the Employee's Withholding Allowance Certificate, is a crucial document for workers in New Jersey, administered by the State of New Jersey – Division of Taxation. This form primarily guides how much state income tax should be withheld from an employee's paycheck. By specifying personal financial details like filing status, number of allowances, and any additional amount to be deducted, employees ensure that their employer withholds the appropriate amount of tax, potentially avoiding underpayment or overpayment of taxes.
The Form NJ-W4, issued by the State of New Jersey Division of Taxation, plays a crucial role in determining the amount of New Jersey Gross Income Tax withheld from an employee's paycheck. Employees are required to enter their personal information, including social security number and address, select a filing status, and if applicable, choose their withholding rate based on a detailed wage chart provided in the instructions. The form accommodates a variety of filing statuses such as single, married/civil union couple joint, married/civil union partner separate, head of household, and qualifying widow(er)/surviving civil union partner. Additionally, it allows employees to claim exemptions from withholding under specific income conditions, adjusting the number of allowances they're claiming, which in turn affects their take-home pay. The inclusion of a wage chart for those with combined incomes over $50,000 aims to assist in accurately determining the appropriate amount of tax to withhold, thereby preventing underpayment or overpayment scenarios. Completing the NJ-W4 correctly is essential for employees to ensure they comply with state tax obligations without facing surprises during tax season. For further clarity or concerns about filing out the form correctly, the Division of Taxation’s Customer Service Center is available to provide support.
Form NJ-W4
State of New Jersey – Division of Taxation
(1-21)
Employee’s Withholding Allowance Certificate
1.
SS#
2. Filing Status: (Check only one box)
Single
Name
2.
Married/Civil Union Couple Joint
Address
3.
Married/Civil Union Partner Separate
4.
Head of Household
City
State
Zip
5.
Qualifying Widow(er)/Surviving Civil Union Partner
If you have chosen to use the chart from instruction A, enter the appropriate letter here
Total number of allowances you are claiming (see instructions)
Additional amount you want deducted from each pay
5. $
6.
I claim exemption from withholding of NJ Gross Income Tax and I certify that I have met the conditions in the
instructions of the NJ-W4. If you have met the conditions, enter “EXEMPT” here
7.
Under penalties of perjury, I certify that I am entitled to the number of withholding allowances claimed on this certificate or entitled to claim exempt status.
Employee’s Signature
Date
Employer’s Name and Address
Employer Identification Number
BASIC INSTRUCTIONS
Line 1 Enter your name, address, and Social Security number in the spaces provided.
Line 2 Check the box that indicates your filing status. If you checked Box 1 (Single) or Box 3 (Married/Civil Union Partner Separate) you will be withheld at Rate A. Note: If you have checked Box 2 (Married/Civil Union Couple Joint), Box 4 (Head of Household) or Box 5 (Qualifying Widow(er) Surviving Civil Union Partner)
and either your spouse/civil union partner works or you have more than one job or more than one source of income and the combined total of all wages is greater than $50,000, see instruction A below. If you do not complete Line 3, you will be withheld at Rate B.
Line 3 If you have chosen to use the wage chart below, enter the appropriate letter.
Line 4 Enter the number of allowances you are claiming. Entering a number on this line will decrease the amount of withholding and could result in an underpayment on your return.
Line 5 Enter the amount of additional withholdings you want deducted from each pay.
Line 6 Enter “EXEMPT” to indicate that you are exempt from New Jersey Gross Income Tax Withholdings, if you meet one of the following conditions:
•Your filing status is SINGLE or MARRIED/CIVIL UNION PARTNER SEPARATE and your wages plus your taxable nonwage income will be $10,000 or less for the current year.
•Your filing status is MARRIED/CIVIL UNION COUPLE JOINT, and your wages combined with your spouse’s/civil union partner’s wages plus your taxable nonwage income will be $20,000 or less for the current year.
•Your filing status is HEAD OF HOUSEHOLD or QUALIFYING WIDOW(ER)/SURVIVING CIVIL UNION PARTNER and your wages plus your taxable nonwage income will be $20,000 or less for the current year.
Your exemption is good for ONE year only. You must complete and submit a form each year certifying you have no New Jersey Gross Income Tax liability and claim exemption from withholding. If you have questions about eligibility, filing status, withholding rates, etc. when completing this form, call the Division of Taxation’s Customer
Service Center at (609) 292-6400.
Instruction A - Wage Chart
This chart is designed to increase withholdings on your wages, if these wages will be taxed at a higher rate due to inclusion of other wages or income on your NJ-1040 return. It is not intended to provide withholding for other income or wages. If you need additional withholdings for other income or wages, use Line 5 on the NJ-W4.
This Wage Chart applies to taxpayers who are married/civil union couple filing jointly, heads of households, or qualifying widow(er)/surviving civil union partner. Single individuals or married/civil union partners filing separate returns do not need to use this chart. If you have indicated filing status #2, 4 or 5 on the above NJ- W4 and your taxable income is greater than $50,000, you should strongly consider using the Wage Chart. (See the Rate Tables on the reverse side to estimate your
withholding amount.)
HOW TO USE THE CHART
1)Find the amount of your wages in the left-hand column.
2)Find the amount of the total for all other wages (including your spouse’s/civil union partner’s wages) along the top row.
3)Follow along the row that contains your wages until you come to the column that contains the other wages.
4)This meeting point indicates the Withholding Table that best reflects your income situation.
5)If you have chosen this method, enter the “letter” of the withholding rate table on Line 3 of the NJ-W4.
NOTE: If your income situation substantially increases (or decreases) in the future, you should resubmit a revised NJ-W4 to your employer.
THIS FORM MAY BE REPRODUCED
WAGE CHART
Total of All
0
10,001
20,001
30,001
40,001
50,001
60,001
70,001
80,001
OVER
Other Wages
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
B
C
Y
A
D
O
E
U
R
W
G
80,00070,001
S
RATE TABLES FOR WAGE CHART
The rate tables listed below correspond to the letters in the Wage Chart on the front page. Use these to estimate the amount of withholding that will occur if you choose to use the wage chart. Compare this to your estimated income tax liability for your New Jersey Income Tax return to see if this is the correct amount of withholding that you should have.
RATE “A”
WEEKLY PAYROLL PERIOD (Allowance $19.20)
ANNUAL PAYROLL PERIOD (Allowance $1,000)
If the amount of taxable
The amount of income tax to be
wages is:
withheld is:
Over
But Not Over
Of Excess Over
$
385
1.5%
673
5.77
+
2.0%
35,000
300.00
769
11.54
3.9%
600.00
1,442
15.29
6.1%
75,000
795.00
9,615
56.35
7.0%
500,000
2,930.00
19,231
628.46
9.9%
1,000,000
32,680.00
1,580.38
11.8%
over
82,180.00
RATE “B”
962
1,346
17.31
2.7%
900.00
1,538
27.69
1,440.00
2,885
35.19
150,000
1,830.00
117.31
6,100.00
588.46
30,600.00
1,540.38
80,100.00
RATE “C”
2.3%
14.62
2.8%
760.00
1,154
20.00
3.5%
1,040.00
26.73
5.6%
1,390.00
123.65
6.6%
6,430.00
567.88
29,530.00
1,519.81
79,030.00
RATE “D”
16.15
3.4%
840.00
22.69
4.3%
1,180.00
30.96
1,610.00
127.88
6.5%
6,650.00
565.38
29,400.00
1,517.31
78,900.00
RATE “E”
1,923
5.8%
100,000
84.04
4,370.00
584.04
30,370.00
1,535.96
79,870.00
When completing the NJ-W4 form, individuals are engaging in an essential step towards ensuring their earnings are appropriately taxed according to New Jersey state law. This form allows employees to determine the amount of state income tax to be withheld from their paychecks. Below are step-by-step instructions that simplify the process of filling it out correctly.
Upon completion, the form should be submitted to your employer, who will use the information to calculate and withhold the correct amount of New Jersey state income tax from your paycheck. It's important to review the form annually or whenever your personal or financial situation changes to ensure the correct amount of tax is withheld.
The NJ-W4 form, also known as the Employee's Withholding Allowance Certificate, is a document used by the State of New Jersey Division of Taxation. It helps employers withhold the correct amount of New Jersey Gross Income Tax from employees' paychecks. Employees provide their filing status, number of allowances, and any additional amount they wish to have deducted per pay period.
All employees working in New Jersey should complete the NJ-W4 form. This ensures that their employer withholds the appropriate amount of state income tax from their earnings.
To claim exemption from New Jersey Gross Income Tax withholding, you must meet specific criteria based on your filing status and income. Individuals can claim exemption if their wages and taxable nonwage income are below certain thresholds, which vary by filing status. The form requires you to write “EXEMPT” in line 6 if you meet these conditions. Remember, exemptions need annual renewal by submitting a new form.
If there are significant changes to your income during the year, either an increase or decrease, you should submit a revised NJ-W4 form to your employer. This adjustment ensures that the amount of New Jersey state income tax withheld from your paycheck is accurate.
Your filing status significantly impacts your withholding rate. For single filers or married/civil union partners filing separately, Rate A applies unless they opt for the wage chart method and meet certain criteria. For married couples filing jointly, heads of households, or qualifying widow(er)/surviving civil union partners with combined wages over $50,000, the wage chart method and corresponding withholding rates (B, C, D, E) may be more suitable.
The wage chart is designed for taxpayers with significant incomes or multiple income sources, ensuring they are withheld at a rate that reflects their overall tax liability more accurately. It helps prevent underpayment of taxes that could result from having multiple jobs or both members of a married/civil union couple working. The chart guides you in choosing a withholding rate that matches your income and filing status.
To determine the correct number of allowances, review the NJ-W4 instructions closely. The number of allowances you claim influences the amount of state tax withheld from your pay. Claiming more allowances reduces the withholding amount, while claiming fewer allowances increases it. Consider your tax liability and financial situation carefully when making this decision.
Yes, on line 5 of the NJ-W4 form, you can specify an additional amount that you want withheld from each paycheck. This option is helpful if you expect to owe more state income tax than would be covered by the regular withholding amount. It can also assist in covering other income that is not subject to withholding.
Filling out tax forms can be a daunting task, and the New Jersey W-4 (NJ-W4) form is no exception. It's important to avoid making mistakes that could lead to incorrect withholdings and potential headaches down the road. Let's walk through four common errors to steer clear of when tackling the NJ-W4.
Many filers struggle with selecting the correct filing status. The NJ-W4 offers multiple options to cater to different life situations, including single, married/civil union couple joint, married/civil union partner separate, head of household, and qualifying widow(er)/surviving civil union partner. A common mistake is not choosing the status that accurately reflects your current situation. This choice is crucial since it directly affects the rate at which you're taxed.
The wage chart provided in the instructions is designed to guide you in adjusting withholdings based on your combined income if you're married or in a civil union and filing jointly, or if you have multiple sources of income. Overlooking this chart, or incorrectly applying it, can result in too little or too much tax being withheld. Make sure to accurately find the intersection that correlates with your wage and the total of all other wages or income to determine the correct table to use for your withholdings.
Deciphering how many allowances to claim can be tricky. Each allowance you claim reduces the amount of money withheld from your paycheck for taxes. Claiming too few can result in a large tax bill at year's end, while claiming too many can lead to underpayment penalties. It's essential to weigh your personal and financial situation carefully to make an informed decision on the number of allowances to claim.
Some individuals may qualify for exempt status, meaning they are exempt from New Jersey Gross Income Tax withholdings. This status is geared towards those who meet certain income thresholds, which vary depending on filing status. Failing to understand the qualifying conditions for the exemption can lead to inaccurately claiming it, leading to the possibility of owing taxes when you file your return. Remember, exempt status needs to be re-certified each year by submitting a new NJ-W4 form.
Avoiding these common pitfalls can help ensure you're on the right track with your NJ-W4. Remember, the goal is to have your withholdings closely match your actual tax liability for the year. If you find this process confusing or you're unsure about your specific situation, considering seeking advice from a tax professional could be very beneficial.
When individuals in New Jersey complete the NJ-W4 form to determine their state income tax withholdings, it's not uncommon for them to encounter or require additional forms during this process. The need for these forms may arise due to various factors such as employment status, income sources, or changes in personal circumstances that affect tax liabilities.
Each document plays a unique role in ensuring the accuracy and compliance of an individual's tax situation. Whether adjusting withholdings on the NJ-W4, reporting income through the NJ-1040, or understanding taxable income from multiple sources, these forms collectively ensure a smooth tax filing process. Being familiar with them can greatly aid in managing one’s financial and tax obligations efficiently.
The Form W-4, a familiar document for anyone who has worked in the United States, is designed to help employers withhold the correct federal income tax from your pay. Similarly, the NJ-W4 serves the same purpose for the state of New Jersey, allowing residents to indicate their tax situation to their employers to ensure the proper amount of state income tax is withheld. Both forms require information about filing status, dependents, and any additional income or deductions, making them analogous in function and purpose, albeit for different tax jurisdictions.
The I-9 Employment Eligibility Verification form, while not concerned with tax withholding, shares the procedural essence with the NJ-W4 in that it is a required form for new employees in the United States. The I-9 verifies the employee's identity and eligibility to work in the U.S., involving personal identification and employment authorization. Both the NJ-W4 and the I-9 are integral to the onboarding process, ensuring legal and fiscal compliance from the outset of employment.
Another analogous document is the W-9, Request for Taxpayer Identification Number and Certification. Similar to the NJ-W4 form, it's used to provide necessary information to entities that will pay you, so they properly report taxable income to the IRS. Where the NJ-W4 is used by employers to withhold income taxes, the W-9 is typically used by freelancers and contractors to provide their taxpayer identification number (TIN) to their clients, facilitating accurate tax reporting without the withholding of income tax.
The 1099 form series also bears similarity with the NJ-W4. These forms are used for reporting income other than salaries, wages, and tips (the kind of income reported through forms like the NJ-W4). The key similarity lies in their purpose of reporting tax-related information to the IRS, although the 1099 form's focus is on miscellaneous income like that from self-employment, interest, dividends, and other sources.
The State Income Tax Withholding Certificate forms, found in various U.S. states, also resemble the NJ-W4. These forms are the state-level counterparts to the federal W-4, varying by state but serving a similar function: instructing employers on how much state income tax to withhold from an employee’s paycheck, based on their personal exemption and status. Each state’s form, much like the NJ-W4, is tailored to its own tax laws and codes.
The Allowance Certificate, sometimes a separate document from the NJ-W4 or the federal W-4 for particular states or circumstances, enables employees to specify additional withholdings or exemptions from their pay for state taxes. This document parallels the NJ-W4 in its aim to adjust the amount of tax withheld from an employee’s earnings, thereby influencing the individual's take-home pay and eventual tax refunds or liabilities.
The Employee’s Withholding Allowance Certificate, another name for forms like the W-4 or NJ-W4 depending on the jurisdiction, directly corresponds with the NJ-W4 in utility and content. Used by employees to declare their withholding allowances and marital status, these certificates guide how much state and federal income tax should be deducted from their paychecks.
The Non-Resident Withholding Waiver form, specific to certain states, offers a point of comparison with the NJ-W4. While the NJ-W4 is for residents of New Jersey to declare their withholding amounts, a non-resident withholding waiver might be used in states where individuals who work but do not reside there can request a waiver from state income tax withholding under certain conditions. Both forms deal with the state income tax withholding but from opposite resident statuses.
Lastly, the Certificate of Exemption from Withholding, similar to line 6 of the NJ-W4 where one can claim exemption from withholding, allows individuals who qualify, under specific circumstances, to have no state income tax withheld from their pay. Both the NJ-W4's exemption claim and this certificate are used to adjust or eliminate the amount of tax an employer withholds, contingent upon meeting certain guidelines and qualifications.
When filling out the NJ-W4 form, there are important Do's and Don'ts to keep in mind to ensure the process is smooth and accurate. Here are four key points for each category:
Do's:
Don'ts:
When it comes to understanding the NJ W4 Form, it's easy to fall prey to misconceptions. Let's clear up some of the most common misunderstandings:
It's the same as the Federal W-4 Form: While both forms serve the purpose of determining the amount of taxes to withhold from an employee's paycheck, the NJ W4 is specific to the state of New Jersey's tax withholdings, whereas the Federal W-4 pertains to federal income tax withholdings.
Changing withholding rates isn't necessary unless you switch jobs: Adjusting your withholding rates might be necessary when experiencing life changes such as marriage, divorce, having a child, or when there are significant changes in your financial situation, not just when you change employers.
Everyone must claim the same number of allowances on their NJ W4: The number of allowances one should claim varies based on individual financial circumstances, such as income level, marital status, and additional income sources.
Claiming "EXEMPT" status is a way to increase your paycheck: While claiming exemption from withholding will indeed increase your paycheck, it is available only under specific conditions, such as expecting no tax liability for the year. Misusing this status could result in owing taxes and penalties at year-end.
You only need to fill out the NJ W4 once: You should review and possibly update your NJ W4 anytime there are personal or financial changes or annually to ensure the correct amount is being withheld.
If you don’t fill out the NJ W4, no taxes will be withheld: If you don't complete the form, your employer will withhold state taxes at a default rate that may not align with your tax situation, potentially leading to under or over-withholding.
Married couples with the same employer must file the same way: Married couples have the option to file their W4s based on their individual income and preference, taking advantage of the most beneficial filing status for their situation.
Filing a NJ W4 exempts you from federal tax withholdings: The NJ W4 has no impact on your federal tax withholdings; it is specifically for determining state tax withholdings for New Jersey.
Only full-time employees need to complete the NJ W4: Any employee receiving a paycheck that is subject to New Jersey state taxes should complete the NJ W4, regardless of their employment status (full-time, part-time, or seasonal).
Understanding these nuances ensures that employees in New Jersey can more accurately manage their state tax withholdings and avoid surprises during tax season.
Filling out and using the NJ W4 form correctly is crucial for employees to ensure the right amount of New Jersey state income tax is withheld from their paychecks. Here are four key takeaways to guide you through this process:
Remember: The NJ W4 form is a tool for your financial wellbeing, allowing you to tailor tax withholding to suit your specific needs. Keeping it up to date with your current financial situation is essential for tax management and planning.
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