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Newark, NJ Payroll Rules

Local payroll and employment requirements that differ from or exceed New Jersey state law

Last updated: January 2025

Minimum Wage
$15.49
Paid Sick Leave
1 hour per 30 hours worked
Max: 40 hours

Minimum Wage

Current Rate$15.49/hour

New Jersey state minimum wage applies. Scheduled to increase annually based on CPI.

Paid Sick Leave

Accrual Rate
1 hour per 30 hours worked
Maximum Accrual
40 hours
Maximum Annual Use
40 hours
Waiting Period
120 days before use

New Jersey Earned Sick Leave Law applies statewide. All employers covered regardless of size.

Local Taxes

Newark Payroll Tax1%

Employer-paid payroll expense tax on wages for employees working in Newark. Not withheld from employees—paid directly by employers.

Urban Enterprise ZoneReduced/Exempt

Businesses in designated UEZ areas may qualify for tax incentives including reduced or eliminated payroll tax obligations.

Additional Local Requirements

Tax FilingEffective: Ongoing

Quarterly Returns

Employers file quarterly payroll tax returns with the City of Newark. Annual reconciliation also required.

RegistrationEffective: Ongoing

Business Registration

All employers with employees working in Newark must register with the city and obtain a payroll tax account number.

Remote WorkEffective: Ongoing

Physical Presence

Payroll tax applies to wages for work physically performed in Newark. Remote employees working outside city limits may not be subject to tax.

ThresholdEffective: Ongoing

All Employers

No minimum threshold—all employers with payroll in Newark are subject to the tax regardless of size.

Official Resources

Important Note

These local rules apply in addition to New Jersey state law. Employers must comply with whichever law provides greater protection to employees. Always verify current requirements with official sources.