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What Are The Criteria That Determine Liability For Unemployment Taxes?

If you start a business and employ one or more individuals and pay wages of $1,000 or more in a calendar year, you may be subject to the law.

If you acquire the organization, trade or business, or substantially all the assets of an employing unit which is already subject to the law, you immediately become a subject employer.

If you are subject to the provisions of the Federal Unemployment Tax Act, you automatically become subject under the law, unless the services performed are specifically excluded under the New Jersey law. An employing unit is generally subject to FUTA if it had covered employment during some portion of a day in 20 different calendar weeks within the calendar year or had a quarterly payroll of $1,500 or more.

NOTE: Agricultural Employers ­ You are liable for contributions on wages paid to agricultural employees if:

  1. You were already a registered employer, or
  2. Not registered, you were or became subject to the Law, having paid wages of $1,000 or more in a calendar year to one or more workers for services performed in a non­agricultural business operation, or
  3. You acquired the organization, trade or business, or substantially all the assets of an employing unit already subject to the law, or
  4. You are subject to the Federal Unemployment Tax Act or
  5. Not subject under the above provisions, you:
    1. Paid gross cash remuneration of $20,000 or more to individuals employed in agricultural labor during any calendar quarter or
    2. Employed ten or more individuals in agricultural labor, regardless of whether they were employed at the same moment of time, for some portion of a day in each of 20 different calendar weeks, whether or not such weeks were consecutive.

Domestic Employers ­ In order for you to become subject to the law, you must have paid gross cash remuneration of at least $1,000 to domestic labor in a calendar quarter.

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