Frequently Asked Questions
Browse employer frequently asked questions below.
Each calendar quarter, all employers, other than domestic employers, subject to the provisions of the Unemployment Compensation Law are required to file the “Employer’s Quarterly Report” (Form NJ-927) and “Employer Report of Wages Paid” (Form WR-30). Both the forms NJ-927 and WR-30 must be submitted for the quarters ending March 31, June 30, September 30 and December 31 of each year. Reports and tax contributions due must be filed by no later than the 30th day of the month immediately following the quarter. The due dates for reports and tax contributions are April 30, July 30, October 30, and January 30. Domestic employers who employ only household workers will file Forms WR-30 and NJ-927H on an annual basis (five reports total: one NJ-927H for the previous year, and four WR-30s for the preceding four quarters, all due by January 30). Learn more here and here.
An employer is an individual, partnership, corporation or other entity for whom an individual performs personal services for remuneration. Learn more here.
Each employer is required to file Form NJ-927 and Form WR-30 quarterly. The “Employer’s Quarterly Report” (Form NJ-927) and the “Employer’s Report of Wages Paid” (Form WR-30) must be filed electronically. You may file the forms online here or by Secure File Transfer Protocol (SFTP) technology. Learn more here.
No employer will receive pre-printed reports. Payments must be made by Electronic Fund Transfer (EFT), credit card or E-check.
You will pay from 0.5% to 5.8% on the first $34,400 earned by each employee in 2019. For more information, click here.
For each employee you must report:
- The employee’s Social Security number
- The employee’s name
- The employee’s gross wages paid during the quarter, and
- The number of base weeks earned by the employee during the quarter.
Gross wages means every form of remuneration paid to employees either directly or indirectly, including salaries (sick leave pay, vacation pay, holiday pay, back pay awards), commissions and 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. Remuneration also includes payments in kind for personal services such as meals, board and lodging received by a worker from his employing unit in addition to or in lieu of (rather than as a deduction from) money wages.
A base week is any calendar week (Sunday through Saturday) in the quarter during which the employee has earned a specific dollar amount or more in remuneration. The base week amount is equal to 20 times the state hourly minimum wage ($172 in 2019).
The base week is determined on the basis of earnings, regardless of the actual payment date. Payments made to employees for vacation, sick or other paid leave are to be reported as wages paid during the quarter. Therefore, all base weeks are credited when the leave is actually taken, which may or may not occur within the same quarter as the payment.
Commissions and/or bonuses are reported as part of wages for the quarter when they are actually paid. These earnings may be used in the “base week” calculations if (1) the payment can be directly attributable to earnings of a specific calendar week, or weeks, and (2) such additional earnings would increase the existing earnings for the calendar week above the minimum amount required for a “base week.”
Yes. If you are subject to the New Jersey Unemployment Compensation Law, you must file both the NJ-927 and WR-30 indicating no wages paid.
To amend wage data (WR-30 report), you must file electronically either online here or by Secure File Transfer Protocol (SFTP). Learn more here.
You can view instructions for amending the WR-30 report by choosing “Help” at the bottom of each page of the online report.
Amended reports are subject to penalties for non-reporting, late reporting, or incorrect reporting.
If you file the contribution report late, you will be charged $10.00 a day for each day of delinquency up to and including the fifth day, after which the charge is a penalty of $10.00 a day or 25 percent of the amount of contributions due for the period covered by the report, whichever is less. If you file a contribution report late on which no contributions are due, the maximum penalty is $50.00.
If you fail to pay the contribution when due, the law provides that the amount of the taxes due will carry interest at the rate of 1.25% for each month from the due date until the date payment is received.
Employers who fail, without reasonable cause, to comply with reporting requirements will be liable for penalties based upon the number of employees (a) who were not reported, (b) who were not reported completely and accurately, (c) who were not reported by the due date, and/or (d) who were not reported on electronic media when required. Such penalties will be assessed as follows:
- for the first failure for one quarter in any eight consecutive quarters, $5.00 for each employee
- for the second failure for any quarter in any eight consecutive quarters, $10.00 for each employee
- for the third and any subsequent failure for one quarter in any eight consecutive quarters, $25.00 for each employee.
Avoid fines by submitting all reports accurately and on time. Provide information about separations when they are for reasons other than lack of work. Avoid unnecessary charges by reviewing determinations, appeal decisions and charge notices for accuracy. Make timely appeals from determinations, appeal decisions and charge notices that you believe are wrong. Attend appeal hearings. Report claimants who refuse work. Report fraud. Lower your experience rating by making voluntary contributions. Use the exception address file to have forms sent to the proper company location.
Yes, all employers must issue Form BC-10, “Instructions for Claiming Unemployment Benefits,” to all employees separated for seven days or more. The BC-10 provides the Division of Unemployment Insurance with the correct name, address, and New Jersey Employer Identification Number of the separating employer. This information facilitates claims processing. To download this form, click here.
Yes, if you have advance knowledge of an expected layoff of 25 or more employees, for an expected duration of seven days or more, you must notify the nearest unemployment insurance Reemployment Call Center. Such notice should be given at least 48 hours prior to the layoff.
Yes, you must notify the Labor Dispute Officer in Trenton (609) 292-1803 immediately after the start of the work stoppage.
Yes. Claimants who refuse or fail to respond to recall may be disqualified from receiving benefits.
Yes, if you anticipate a temporary separation of 25 or more workers, the Division has instituted a program to help employers reduce the cost of processing temporary mass layoff claims. Learn more here.
The regular base-year period of any claim consists of the first four of the last five completed calendar quarters preceding the date of the claim. When a claimant files an unemployment claim, the weeks and wages in the base-year period are counted to determine eligibility.
There are two alternative base-year periods that can be used to determine monetary eligibility on claims originally determined invalid under the regular base-year period. Alternative Base Year #1 consists of the four most recently completed calendar quarters preceding the date of a claim, and Alternative Base Year #2 consists of the three most recently completed calendar quarters preceding the date of the claim and weeks in the filing quarter up to the date of the claim.
To have a valid claim, a claimant must have had at least 20 base weeks of earnings in covered employment during the base-year period or, in the alternative, have earned during that time a specific dollar amount or more in remuneration. The base week amount is 20 times the state hourly minimum wage ($169 in 2018) and the alternate earnings test is 1,000 times the state hourly minimum wage ($8,500 in 2018).
“Remuneration in lieu of notice” is a payment obligated by legal requirement, contract or custom to take the place of advance notice of separation. It is considered an extension of employment and should be reported as regular base weeks and wages. An individual is disqualified for unemployment benefits for any week in which he/she receives remuneration in lieu of notice.
Note: An individual who receives remuneration in lieu of notice for a period of less than a calendar week may be eligible for partial unemployment benefits for such week.
“Severance pay,” if paid within the context of contractual obligation or by custom, is a taxable fringe benefit under Administrative Code 12:16-4.3. It is subject to state unemployment, temporary disability, workforce development and family leave insurance contributions. However, severance pay is not considered wages earned when calculating unemployment benefits for claimants.
“Continuation pay” is also known as sick leave pay. Continuation pay is considered wages and is taxable under Administrative Code 12:16-4.2. It is subject to state unemployment, temporary disability, workforce development and family leave insurance contributions. Continuation pay is considered wages earned when calculating temporary disability benefits for claimants.
Note: “Salary continuation through date of termination” is defined as payments made by the employer that represent wage or salary payments through the date of termination during which time the employee is not required to perform any services. These payments are based on either a contractual or other agreement. It is considered an extension of employment through the date of termination of the contract or agreement and should be reported as regular base weeks and wages. An individual is ineligible for unemployment benefits for any week in which he/she is receiving salary continuation through date of termination.
A claimant may potentially receive 60 percent of his/her average weekly wage, not to exceed the maximum weekly amount. In 2018 the maximum weekly benefit amount is $681.00. The maximum weekly amount is recalculated annually and is equal to 56 2/3 percent of the statewide average weekly wage. A claimant can collect a maximum of 26 weeks of benefits on a regular unemployment claim.
Each base-year employer is charged a percentage of each benefit payment in proportion to the amount of wages that the employer paid the claimant during the base-year and the total wages received by the claimant during that period.
A lag-period employer is an employer who paid wages to an individual between the last day of the base-year period and the filing of an unemployment claim. Since wages earned in the lag period are not in the base-year, employers with only lag-period employment are not normally charged. However, if the claim is determined invalid under the regular base year, an Alternative Base Period may be used to determine monetary eligibility. If the lag-period employment is in the Alternative Base Year, the lag-period employer will then be charged.
You may report information about a wage-benefit conflict of a former worker who has been recalled to work on Form B-187Q, “Unemployment Benefits Charged to Experience Rating Account,” which is mailed to “chargeable” employers quarterly. You may report any other information about a potentially fraudulent situation online here.
Yes, a claimant may be eligible for partial unemployment benefits while working part time due to lack of work. However, the worker’s weekly benefit amount will be reduced dollar-for-dollar for all earnings in excess of 20% of the worker’s full weekly benefit rate.
A claimant is disqualified for benefits for any week in which the individual is a student in full time (at least 12 credits) attendance at, or on vacation from, any public or other nonprofit educational institution, except in cases in which the claimant establishes 20 or more base weeks of employment or meets the alternative earnings test during academic term(s) in the base-year.
The full-time student criteria do not apply to any individual attending a school or training program approved by the Division to enhance the individual’s employment opportunity.
A claimant is determined to have voluntarily quit a job with good cause if the reason for leaving is directly attributable to actions of the employer or conditions of employment. The burden of proof is on the claimant to prove that he/she quit for good cause.
An individual who quits work may become eligible for future benefits after meeting a re-qualifying requirement. For separations occurring before July 1, 2010, the New Jersey requirement is having at least four weeks of new employment, earning at least six times the weekly benefit rate, and being separated from the new employment for a non-disqualifying reason. For separations occurring July 1, 2010, and later, the New Jersey requirement is having at least eight weeks of new employment, earning at least 10 times the weekly benefit rate and being separated from the new employment for a non-disqualifying reason.
According to federal law, all states’ unemployment compensation laws must contain re-qualifying requirements. Once the re-qualifying threshold is met, the disqualification must end and the individual is potentially eligible to receive benefits.
The New Jersey Unemployment Compensation Law provides for the relief of charges to a contributory employer’s experience rating account when an individual’s separation from employment is for reasons that are disqualifying under the law. Thus, even though an individual may overcome an imposed disqualification or a potential disqualification, and is entitled to receive unemployment benefits, the employer’s account will not be charged for the benefits that occur subsequent to the disqualifying separation. Learn more here.
If you discharge an employee, we must determine whether the discharge was for misconduct in connection with the employment. The burden of proof is on you. New Jersey Law provides for three different types of misconduct: simple misconduct, severe misconduct, and gross misconduct. Learn more here.
You may appeal any determination that you believe to be incorrect. An appeal of a determination must be made in writing and must be received or postmarked within seven days after delivery or 10 days after the mailing of the determination. You can file an appeal online here.
Note: The Appeal Tribunal hearing process was changed during 2017 and now requires parties to register for the hearing. Be sure to carefully read the hearing notice in its entirety and follow instructions. Your failure to follow the instructions in the hearing notice may lead to your appeal being dismissed or you may be denied participation in the hearing.
Individuals who have firsthand knowledge of the reason for separation and the company rules should attend.
Note: More weight is given to firsthand evidence and testimony than is given to hearsay or third party testimony. Learn more here.
The regular base-year of a Disability During Unemployment claim consists of the first four of the last five completed quarters preceding the date of the claim. Alternative base-year periods consist of the four most recently completed calendar quarters preceding the date of the claim and the three most recently completed calendar quarters preceding the date of the claim and the weeks in the filing quarter up to the date of claim. In State Plan disability, the base year consists of the 52 calendar weeks immediately preceding the week in which the claimant is disabled. When a claimant files a claim, the weeks and wages in the appropriate base-year period are counted to determine the validity of the claim.
Benefits are paid after the eighth day of disability; the first seven days of payment are known as the “waiting week” on a State Plan claim becomes compensable when an unpaid leave continues for a total of 22 days or more. The Disability During Unemployment program is similar to the Unemployment Insurance program in that a waiting week is not required before benefits are issued.
If the claimant’s period of disability commences on or after the start of a labor dispute and the claimant is a participant, no disability benefits can be paid for the duration of the labor dispute. If the claimant is still disabled after the labor dispute is over, benefits can be paid following the end of the labor dispute.
However, if an individual becomes disabled prior to a labor dispute, benefits may be paid during the labor dispute period.
There is no provision in the Temporary Disability Benefits Law that requires an employer to rehire a claimant once the disability is over. However, employment rights provided by state or federal Civil Rights legislation still apply.
The claimant has 30 days from the first day of disability in which to file a claim. If the claim is received more than 30 days after the first day of disability, the individual must show good cause why the claim was not filed timely. Benefits may be reduced or denied.
A disability claim should not be filed until the period of disability begins. Even though there may be a scheduled date for surgery, a claim must not be submitted until the individual has actually stopped working.
Yes, wages earned by individuals employed on a part-time basis can be used to establish eligibility. Of course, to qualify for benefits, the individual would have to be unable to perform the duties of the part-time employment and be under the care of a licensed physician.
An employer who knows or has reason to suspect that a claimant is working and collecting disability benefits should notify the Division of Temporary Disability and Family Leave Insurance as soon as possible.
To report suspected fraud, please click here to send us a message or send a fax to 609-292-1692.
Disability benefits are taxable under federal income tax and FICA (Social Security). The portion of the benefit payment that is taxable is that portion attributable to the employer’s disability contribution rate. The employer is also liable for the employer’s share of FICA. Disability benefits are not taxable under the New Jersey state income tax.
The employer is notified of the FICA deduction on the DS-7C charge notice, which is mailed each time a check is sent to the claimant. If you are aware that the claimant has paid his maximum yearly FICA tax, you should notify the Division of Temporary Disability Insurance, and FICA deductions will cease.
Yes, a claimant disabled due to alcoholism or an alcoholism-related condition can be paid disability benefits as long as he/she is under the care of a licensed physician and meets all other eligibility requirements.
Yes, as long as they are no longer using illegal drugs and they are being treated for their substance abuse. As soon as they undergo treatment for substance abuse in a program with a licensed physician, they are immediately eligible for disability if certified by their doctor and meet all other eligibility requirements.
The type of coverage of the individual’s most recent employer determines whether the individual receives benefits under the state or private plan. If that employer is covered by a private plan, the plan assumes full responsibility for paying benefits. Conversely, if the last employer is covered under the State Plan, State Plan Operations in the Division of Temporary Disability Insurance assumes the responsibility.
Under the Unemployment Compensation Law, all covered employers in the base year share the benefit charge associated with a UI claim on a proportional basis. This is not possible under the Disability Insurance Program since there is both private and state plan coverage. If a claim was filed and there were private and State Plan employers in the base year, there would be no way to charge the private plan employer since, in effect, they pay no contributions to the Temporary Disability Fund. However, there are no benefit charges to the employer for claims paid under the Disability During Unemployment Program.
Yes. Many individuals have more than one employer and the law requires that wages from all base-year employers be used to calculate the benefit amount, even if they are not the individual’s last employer.
If you pay the claimant money during a period of disability, the amount of benefits paid may be affected. In such cases, you should notify the Division of Temporary Disability Insurance in writing as soon as possible. The information should include the claimant’s name, Social Security number, type of payment, the amount paid, and the period to which the payments apply.
For information about the independent medical examination process or to request a medical examination, complete an online request through our website or FAX 609-292-1692.
Work-connected injuries or illnesses are not compensable under the Temporary Disability Benefits Law. However, if an individual claims Workers’ Compensation benefits and the claim is contested by the Workers’ Compensation carrier, the law allows temporary disability to be paid pending resolution of the Workers’ Compensation claim. A lien is filed and the Division of Temporary Disability Insurance will have subrogation rights against any subsequent Workers’ Compensation award.
While a corporate officer/owner of an active corporation may not receive unemployment benefits during an off-season, such individuals who become disabled may be eligible to receive temporary disability benefits under the State Plan.
That individual may file for benefits under the Disability During Unemployment (DDU) program. If the individual is currently receiving Unemployment Insurance (UI) benefits, his/her claim will be transferred to the DDU Section for an eligibility review. Whether or not the individual is currently receiving UI benefits, he/she should file a disability claim (Form DS-1). An eligibility review will determine if the individual has sufficient earnings and meets the requirements to qualify for the program. No charges accrue to employers for claims paid under the DDU program.
The Temporary Disability Benefits Law allows employers the option of choosing to establish a private plan for the payment of temporary disability benefits in place of paying benefits under the State Plan. All private plans must be approved by the Division of Temporary Disability Insurance before they become effective. Private Plan Operations is responsible for the approval process. This office also oversees the administration of private plan policies and the processing and payment of private plan benefits.
At a minimum, approved private plans must meet the basic provisions required of State Plan. Under a private plan:
- Benefits paid must be at least equal to the amount that would be paid on a State Plan claim.
- Eligibility requirements cannot be more restrictive than they would be for a State Plan claim.
- Coverage must be at least equal to that offered by the State Plan.
- Neither the employer, nor their workers are required to contribute to the State's Temporary Disability Insurance Trust Fund while the private plan remains in existence. The cost to the worker for the private plan cannot be more than it would be under State Plan.
- A written election must be held, unless waived, if the plan is contributory and covers members of a Collective Bargaining Agreement. A majority of employees must agree to the plan prior to the effective date of the plan.
For additional information on private insurance plans, please go to MyLeaveBenefits.nj.gov.