NJ A5371

Municipalities may retain up to 3% of employer payroll tax collected annually to cover administrative costs related to the tax program

Employers must provide additional information as requested by municipalities to assist in local tax administration

Employees already subject to an out-of-state employer payroll tax are exempt from New Jersey municipal payroll taxes, provided the employer submits documentation of residency status, out-of-state work location, and the applicable out-of-state tax

The Director of the Division of Taxation must provide wage and tax withholding information to municipalities upon request to verify employer-reported payroll data and identify employers who failed to report for a preceding quarter

Interest on delinquent payroll taxes cannot exceed 8% annually on the first $1,500 of delinquency and 18% annually on amounts exceeding $1,500