Businesses of all types, including sole proprietorships, partnerships, corporations, and nonprofits, are responsible for withholding income based on employee wages and earnings and filing reports to the appropriate governmental agencies.  An employee is an individual who performs services for a person or organization for whom he/she has established the legal relationship of employer and employee. Are You An Employer? Your Wage Reporting and Withholding Responsibilities Withholding New Jersey Income Taxes Return to Registering and Responsibilities