NJ S2952

Municipalities imposing employer payroll taxes may retain up to 3% of collected revenues annually to cover administration costs.

Employees subject to out-of-state employer payroll taxes would be exempt from New Jersey municipal payroll taxes, with employers required to submit documentation of the employee's residency, work location, and applicable out-of-state tax.

The Division of Taxation must furnish wage, withholding, and other tax return information to municipalities for verifying employer-reported payroll and identifying employers who failed to report for a preceding quarter.

The bill removes the Director of Taxation's discretion over disclosing tax information to municipalities, making such disclosure mandatory for payroll tax administration.

Municipalities may require employers to provide additional information to assist with local payroll tax administration as requested by the taxing municipality.