S.852

New Jersey S852 reduces the taxable wage base for payroll tax contributions.

New Jersey S852 reduces the taxable wage base applied to certain payroll tax contributions by requiring the commissioner to determine the taxable wage amount by multiplying the Statewide average weekly wage by 14, rather than 28. The bill provides that if the taxable wage amount determined by the commissioner in any given year is less than the taxable wage amount determined for the preceding year, the greater amount will be used. In effect, the bill reduces the taxable wage amount applied to tax contributions by approximately half beginning on January 1, 2022.