New Jersey State Tax Routine (NJTX)

Currently New Jersey utilizes the federal tax calculation. Note: as there is no special processing for New Jersey, it is not required to set the Special Routine ID for New Jersey Tax Deductions.

Data Setup Considerations

Sites will need to ensure they have implemented the following Business Process/Data Setup changes at their site prior to using the New Jersey State Tax Routine.

1. Tax Marital Status (TAXM) Setup for New Jersey State Tax Deductions:

1. New Jersey utilizes multiple marginal tax brackets to withhold taxes based on an employee’s filing status and their annual wages. In order to support this, sites should create entries on TAXM that correspond to each rate options available.

For example, if the rate options are Rate A, Rate B, and Rate C, three TAXM entries should be created.

2. Tax Parameters (TAXP) Setup for New Jersey State Tax Deductions

1. TAXP entries should be created for each Tax Marital Status that has been created for New Jersey Tax.

2. The Annual Exemption Amount is the Withholding Allowance.

3. Marginal Tax Rates (DEDX) Setup for New Jersey State Tax Deductions

1. DEDX entries should be created for each Tax Marital Status that has been created for New Jersey Tax.

4. Employee Tax Parameter (TAX) enrollment (Note: this only applies to employees enrolled in a Tax Class (TAXC) that includes an New Jersey State Tax Deduction).

1. The State Tax Allowance field is the Withholding Allowance Count.