Employer FAQs

What reports am I required to file ?

Each quarter every employer who is subject to the New Jersey Unemployment Compensation Law is required to file a NJ-927, “Employer’s Quarterly Report,” and a WR-30,”Employer Report of Wages Paid.” 

 Must I file a quarterly report if I have no wages to report?

 YES. If you are subject to the New Jersey unemployment compensation law, you must file a NJ-927 and WR-30, indicating no wages paid. 

 What rates should I use when filing my reports ?

NEW EMPLOYERS RATES : Unless you are (or become) subject to the New Jersey unemployment compensation law under the “successor” provisions of the law, in most cases a new employer (one in business for less than three years) is assigned basic starting rates. For the periods shown, the basic rates are as follows:

Period                                         UI                DI         WF       FLI

07/01/09 to 06/30/10    2.6825%    0.5%    0.1175%   0.0%

07/01/08 to 06/30/09    2.6825%   0.5%    0.1175%    0.0% 


 Unemployment and Disability Insurance tax rates are assigned on a fiscal year basis (July 1 – June 30). Every subject employer receives a ” Notice of Employer Rates” (form AC-174.1) and its accompanying explanation at the beginning of each fiscal year. You may obtain your current rates by contacting the Experience Rating Unit.

WORKER RATES: For the periods shown, workers’ contribution rates for unemployment and state plan disability insurance are as follows:

Year                                                                        UI           DI           WF           FLI

2009/2010 (01/01/10 to 06/30/10) 0.3825% 0.5% 0.0425% 0.1200%

2009/2010 (07/01/09 to 12/31/09) 0.3825% 0.5% 0.0425% 0.0900%

2008/2009 (01/01/09 to 06/30/09) 0.3825% 0.5% 0.0425% 0.0900%

What is the taxable wage base ?

For the periods shown, subject employers must pay taxes on wages up to the following amount :


2010 29,700

2009 28,900

2008 27,700

2007 26,600 

What are gross wages ?

Gross wages include every form of remuneration paid to an employee either directly or indirectly, including salary (sick leave pay, vacation pay, holiday pay, back pay awards), commissions, bonuses, and the cash value of all compensation in any medium other than cash as actually paid or otherwise distributed to the employee during the reported quarter. Payments in kind for personal service such as meals, board, or lodging received by a worker from his employing unit in addition to or in lieu of (rather than as deduction from) money are deemed to be remuneration.

What are the eligibility requirements for a reimbursement account ?

Eligibility: An organization must be defined as non-profit as described in section 501(C)(3) of the Internal Revenue Code and be exempt from Income tax under section 501(A) of the Internal Revenue Code to be eligible to become a reimbursement account. A non-profit organization that elects to reimburse the unemployment trust fund for benefits paid to its former employees is required to furnish proof of financial responsibility or file a surety bond with the New Jersey Department of Labor and Workforce Development.

New Employer: A newly subject employer must submit a written notice of intention to apply for the reimbursement option to the Division of Employer Accounts within 120 days of the date status is attained, or no later than 30 days from the date on which such an organization is notified of its subjectivity, whichever is later. Existing Employers: After reporting a non-profit contributory employer for a minimum of two calendar years, you may choose the reimbursement option of benefit payment by filing a written notice to that effect with the Division of Employer Accounts no later than February 1 of any calendar year. For additional information, please contact the Division of Employer Accounts : Employer Status Unit.

How do I amend a previously filed report ?

To amend your NJ-927 and/or WR-30 reports, you MUST amend them on-line only at the Division of Revenue web site. You may no longer submit an amended return on paper. Directions for completing the on-line amended return may be found at the Division of Revenue web site. http://www.state.nj.us/treasury/revenue/amdreturns.htm

How do I request a refund ?

EMPLOYER An employer who has overpaid tax contributions may request a refund by contacting the Division of Employer Accounts: Employer Refund unit, or by submitting a UC-9 “Employer’s Claim for Credit or Refund by Reason of Erroneous Payment of Contributions” with the division. If gross wages originally reported on the WR-30 for any individual employee were reported incorrectly, an amended WR-30 must be filed online and a UC-9 must be completed and mailed to the division. An employer is entitled to a refund of excess contributions paid, if requested no more than two years after the calendar year in which the erroneous payment was made. EMPLOYEE An employee who resides in New Jersey and overpaid worker contributions as result of working from more than one employer may take credit for the overpayment on the NJ1040. Non-residents may obtain a refund by contacting the Division of Employer Accounts: Worker Refund unit, or by submitting to the Division a UC-9A with copies of any W-2s showing excess deductions. An employee is entitled to a refund of excess contributions if the request is made within two years after the calendar year in which wages are paid.

What records must I maintain for my employees ?

Every individual, group of individuals, firm or organization that employs one or more persons on a permanent, temporary or part-time basis, whether or not they are subject to unemployment compensation law, must maintain and retain for the current year and four preceding calendar years the following records : Individual worker records: Full name, address, and Social Security number; The date hired, rehired, and returned to work after temporary layoff; The date separated from employment and the reason for such separation; The number of base weeks and wages; Total remuneration paid, showing separately: cash, commissions, and bonuses; reasonable cash value of remuneration paid by the employer in any medium other than money, including room and board, meals, tips; special payments such as bonuses, gifts, etc., which have been paid during the pay period but which relate to employment in prior period shall be shown separately under the heading: cash payments cash value of other remuneration the nature of such payments the period during which the services were performed for which special payments were paid Payroll Records: The full name of each employee and the days of the calendar week in which work was performed for remuneration; The beginning and ending dates of each pay period; The total amount of wages paid to each employee in each pay period; The total remuneration paid to all such individuals combined, separately by money and other remuneration in each pay period and in all pay periods within each quarter.

Am I required to register a family-operated business ?

A family-run business is exempt from the New Jersey unemployment compensation law if: The business is a sole proprietorship, and The only employees are parents in the employ of a son or daughter, or The only employees are children under the age of 18 in the employ of a parent.

How are unemployment benefits charged to my account ?

When unemployment benefits are paid to a claimant, a charge equal to the benefit amount is made to the account of the employer for whom the individual worked. If the claimant worked for more than one employer during the period on which the benefits are based, each base year employer is charged proportionally for each benefit payment, which is determined by the amount of wages that the employer paid the claimant during the base year and total wages received during that period. That is, under proportional charging, all base year chargeable employers share in the cost of each week of benefit payments. The employer is notified of these charges quarterly on the form B-187Q, “Unemployment Benefits Charged to Experience Rating Account.” employers should check these listings carefully against their payroll records to help prevent incorrect charges and improper benefit payments.

How can I reduce my UI/DI rates ?

You may reduce your UI/DI rates: Avoid fines by submitting all reports accurately and on time. Avoid unnecessary charges by reviewing determinations, appeals, decisions, and charge notices for accuracy. By making timely appeals on determinations, appeal decisions and charge notices that you believe to be erroneous. By attending appeal hearings and reporting fraud. By making voluntary contributions. By using the “exceptions address file” to have forms sent to the proper company location.

How do I grant power of attorney ?

You may grant power of attorney to another individual to represent you before the Division of Employer Accounts by submitting a power of attorney document containing: The corporate seal, unless the employer is an individual or a partnership; The signature of the employer(s) or duly authorized corporate officer; Specific mention of Employment Security as the entity before whom representation will be made on behalf of the employer; The signature of a notary public and the expiration date of commission; The signature of the representative and a statement acknowledging power of attorney authorization.

What is a private disability plan ?

A private disability plan is one in which temporary disability benefits are provided for workers by an agency other than the state. You may establish a private plan for the payment of disability benefits in place of the benefits payable under the state plan. Such a private plan may be a contract of insurance issued by an authorized carrier, by an employer as a self-insurer, or by an agreement between a union and an employer. The Bureau of Private Plans must approve all private plans. You must submit for review an application and complete description of the plan. To apply for a private plan, contact: Division of Temporary Disability Insurance Bureau of Private Plan Approval and Termination Section PO Box 957 Trenton, NJ 08625-0957 Telephone: (609)292-2720 Fax: (609)292-2537

How do I determine whether an individual who performs services for me is an independent contractor ?

 An employer is not liable for unemployment or temporary disability contributions for services performed by an independent contractor. To be considered as an independent contractor, an individual must retain all control or direction over the services rendered. In addition, the independent contractor must be customarily engaged in the established trade or business which should have been existence prior to its association with the employer, and which trade or business should be independent to the point that it could survive if the relationship between the employer and the independent contractor were terminated. An independent contractor advertises his or her services, is in a position to realize a profit or suffer a loss, and has an investment in its business.