New Jersey Employer Requirements: UI, TDI and FLI Payroll Taxes, New Hire Reporting and Posters
New Jersey Employer Requirements: UI, TDI and FLI Payroll Taxes, New Hire Reporting and Posters
Your first payroll in New Jersey brings a set of state obligations that most new employers underestimate. You register with the state, withhold several contributions from every paycheck, file quarterly returns, report each new hire, and post required notices. This guide covers each requirement in the order you will hit it, using the 2026 and 2027 figures the state has published so far.
Informational content only. This article is general information, not legal or tax advice. Payroll rules change, and a CPA or payroll provider should confirm your numbers before your first pay run. If you cannot match a figure to an official agency page, confirm it with that agency before you rely on it.
Step 1: Register as an employer through NJ-REG
New Jersey issues no general statewide business license, and counties license nothing either. The registration that matters for payroll is employer registration. Every business that pays employees completes tax and employer registration with the Division of Revenue and Enterprise Services (DORES) through NJ-REG on the New Jersey Business Portal. Registration produces your New Jersey tax identification number and, where applicable, a sales tax certificate of authority.
Register before your first paycheck goes out. Your Business Registration Certificate (BRC) is proof that you completed NJ-REG registration. It is not a license. Contractors doing business with the State and other public agencies have a separate BRC requirement, so check the Division of Revenue and Enterprise Services pages if that describes your work.
Step 2: Know the four payroll contributions
Workers pay four contributions through payroll deductions: unemployment insurance (UI), Temporary Disability Insurance (TDI), Family Leave Insurance (FLI) and the workforce development contribution. Employers pay their own share on top of that, and new employers pay different employer rates for their first three years. Searchers often type "nj sdi rate" or "nj fli rate." New Jersey's disability program is called TDI, not SDI, and FLI is a separate program with its own rate.
| Contribution | 2026 worker rate | 2026 wage base | 2027 wage base |
|---|---|---|---|
| Unemployment insurance (UI) | 0.3825% | $44,800 | $46,400 |
| Temporary Disability Insurance (TDI) | 0.19% | $171,100 | $177,100 |
| Family Leave Insurance (FLI) | 0.23% | $171,100 | $177,100 |
| Workforce development | 0.0425% | $44,800 | $46,400 |
Note the two bases. Employers pay TDI on the $44,800 base, not the $171,100 base that workers use for TDI and FLI. The 2027 wage bases are set, but confirm the 2027 rates with the New Jersey Department of Labor and Workforce Development before you budget for them.
New employer rates for the first three years
A new employer pays fixed employer rates for its first three calendar years: UI at 2.6825%, TDI at 0.5% and workforce at 0.1175%. These apply to the same wage bases shown in the table. After that period, the state sets your rates based on your own record, so confirm your assigned rates before you budget past year three. This is the rate most startups get wrong, because they plan around the worker rates alone.
Worked example: one employee at $50,000 in 2026
These figures are illustrative. They use only the rates and bases above, for a full year of pay at a $50,000 salary.
- Worker UI: 0.3825% of $44,800 = $171.36
- Worker workforce: 0.0425% of $44,800 = $19.04
- Worker TDI: 0.19% of $50,000 = $95.00
- Worker FLI: 0.23% of $50,000 = $115.00
- Total deducted from the employee: $400.40
- New employer UI: 2.6825% of $44,800 = $1,201.76
- New employer TDI: 0.5% of $44,800 = $224.00
- New employer workforce: 0.1175% of $44,800 = $52.64
- Total employer contributions: $1,478.40
Step 3: Withhold income tax and file quarterly
New Jersey gross income tax withholding is separate from the contributions above. Have each new hire complete the federal Form W-4 and the New Jersey withholding certificate, Form NJ-W4, before the first payroll. Use the withholding tables published by the Division of Taxation and deposit on the schedule the state assigns to your account.
Two quarterly returns form the core of your state payroll reporting:
- Form WR-30 reports each employee's wages paid during the quarter.
- Form NJ-927 reports the New Jersey gross income tax you withheld plus your UI, TDI, FLI and workforce contributions.
File both every quarter through the state's online portal. Check the current due dates on the agency page for each form. A missed quarter is easy to overlook when you are busy opening the business, so put the dates on a shared calendar the day you register. Confirm the filing frequency assigned to your account as well, because the state can set different deposit schedules.
Step 4: Report new hires within 20 days
Report every new hire and rehire to the NJ State Directory of New Hires within 20 days of the hire date. Rehires count, so an employee who returns after leaving must be reported again. Build this into onboarding. Collect the employee's name, address and Social Security number on the first day, then make the report before the 20-day window closes. Assign one person to own the task so it does not fall between the cracks.
Step 5: Workers' compensation and Earned Sick Leave
Workers' compensation coverage is required from your first employee. Do not wait until you reach a certain headcount. Bind the policy before the first day of work, because an uninsured workplace injury can cost far more than a premium.
New Jersey's Earned Sick Leave law also applies to your employees. Confirm the accrual, carryover and usage rules on the New Jersey Department of Labor and Workforce Development (NJDOL) website, and set up sick time balances in your payroll system from the start so you are not reconstructing hours later.
Employees versus independent contractors
Everything in this guide applies to employees. Independent contractors do not have payroll contributions withheld, but whether a worker is an employee or a contractor is a legal question that depends on how much control you exercise over the work, how the worker is paid and how the relationship is structured. Misclassifying a worker can create back contributions, penalties and disputes, so settle the question with an employment attorney or CPA before you pay anyone for ongoing work.
Required workplace posters
Post required notices where employees can read them, usually in a break room or other common area, and keep the set current. State and federal agencies update their posters, so check each one on the NJDOL website before you print it. Common New Jersey requirements include:
- New Jersey Earned Sick Leave notice
- Temporary Disability Insurance and Family Leave Insurance notice
- Workers' compensation notice
- New Jersey wage and hour and wage payment notices
- New Jersey Law Against Discrimination notice
- Federal notices, such as Fair Labor Standards Act, OSHA and equal employment opportunity posters
This list is not exhaustive, and whether each poster applies to you can depend on your industry and headcount. Confirm the full set with the agency or your attorney.
The employer Medicaid fee: rarely a startup issue
The employer Medicaid fee under P.L.2026, c.23 took effect July 1, 2026. It applies only to employers with 50 or more employees enrolled in New Jersey Medicaid, at $325 to $725 per covered employee or dependent. If you have fewer than 50 employees enrolled in NJ Medicaid, the fee does not apply to you, which is why it rarely touches a startup. If your headcount is near that line, confirm your enrollment count with a CPA.
Payroll setup checklist
- Form your LLC or corporation and confirm the entity is active.
- Get your federal employer identification number from the IRS.
- Register through NJ-REG and save your New Jersey tax identification number.
- Set up payroll for UI, TDI, FLI and workforce deductions, plus employer contributions at the new employer rates.
- Collect Form W-4 and Form NJ-W4 from every new hire.
- Report each new hire or rehire to the NJ State Directory of New Hires within 20 days.
- Bind workers' compensation before your first employee starts work.
- Post all required notices in a visible location.
- File Form WR-30 and Form NJ-927 every quarter.
Where to confirm the numbers
- Division of Revenue and Enterprise Services: NJ-REG and business registration questions
- New Jersey Division of Taxation: withholding, employer tax rates and quarterly filing questions
- NJ Business Portal registration page: start employer registration online
- New Jersey Small Business Development Centers: advisors who can review your payroll plan
- SBA New Jersey District: federal small business resources for the state
This guide is informational and is not legal, tax or payroll advice. Multi-state employees, owner pay and worker classification each raise questions that a qualified CPA or employment attorney should answer before you commit to a payroll structure.