Appendix D-Tax Setup Information > New Jersey State Tax

New Jersey State Tax

New Jersey uses five tax tables to compute the state tax withholding for residents. Tables A and B are standard although employees can choose to use tables C, D, or E, depending on their marital status.

If you receive a New Jersey Form NJ-W4 Employee’s Withholding Allowance Certificate from an employee, you may need to enter a different tax table for withholding in Sage 100 Contractor.

In Sage 100 Contractor, marital status options 1-Single and 4-Married/Separate use table A and cannot use a different table. Marital status options 2-Married, 3-Head of Household, and 5-Married Joint use table B unless a table number is entered on the calculations tab. It is not necessary to enter a table number for employees that use the standard tables.

Important! There is an exception. When an employee indicates a marital status option of 2-Married, 3-Head of Household, or 5-Married/Joint in Sage 100 Contractor, the employee can select a different tax table. If the employee meets the criteria on the NJ-W4 and indicated a table other than table B, enter the appropriate table number in the Calculations tab.

For table

Enter this

A

1

B

2

C

3

D

4

E

5

To set up payroll calculations on an employee for New Jersey State Tax:

1 Open 5-2-1 Employees.
2 Using the data control, select the employee.
3 Click the Calculations tab.
4 In the Table# column, in the cell of the New Jersey Income Tax row, enter the tax table number.
5 On the menu bar, click File, then click Save.
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