Bill > A5371

This bill allows municipalities to retain up to three percent of collected employer payroll taxes to cover administrative costs, and clarifies that if a municipality has a median household income of $55,000 or greater, all employer payroll tax revenue must be deposited into a trust fund exclusively for school purposes. It also requires employers to provide additional information to municipalities for local tax administration and establishes that an employer payroll tax imposed by a municipality will not apply to an employee if an out-of-state entity already imposes such a tax on that employee for services performed out-of-state, provided the employer submits documentation to the municipality. Furthermore, the bill amends existing law to permit the Director of the Division of Taxation to furnish employer-provided wage and tax withholding information to designated municipal officers for the limited purposes of verifying reported payroll information and identifying employers who have not reported payroll data, thereby enhancing the administration of local employer payroll taxes.

Budget and Finance, Business and Industry

https://www.njleg.state.nj.us/bill-search/2024/A5371