New Jersey bill A3151 excludes overtime pay from gross income tax for certain employees.

New Jersey bill A3151 excludes overtime pay from gross income tax for employees subject to the overtime rate mandated under section 5 of P.L.1966, c.113. This exemption applies to payments for working time in excess of 40 hours in a week. The bill also instructs employers not to withhold State gross income tax from this tax-exempt overtime compensation. The act takes effect immediately and applies to taxable years beginning on or after January 1 following the date of enactment.

New Jersey bill A3151 excludes overtime pay from gross income tax for certain employees.

New Jersey bill A3151 excludes overtime pay from gross income tax for employees subject to the overtime rate mandated under section 5 of P.L.1966, c.113. This exemption applies to payments for working time in excess of 40 hours in a week. The bill also instructs employers not to withhold State gross income tax from this tax-exempt overtime compensation. The act takes effect immediately and applies to taxable years beginning on or after January 1 following the date of enactment.