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Tax Developments: New Jersey

NJ Earned Sick Leave

The state of New Jersey has recently passed changes to the NJ Earned Sick Leave Law.  These changes went into effect on October 29, 2018.  Most employers must now provide sick leave for their employees.  Under the new law, your company will be required to follow specific rules about how you offer sick leave, and how you maintain and retain sick leave records.  

More information can be found on the NJ Department of Labor and Workforce Development's website:

Earned Sick Leave in New Jersey

Notice of Employee Rights - Under the law, employers are required to provide a Notice of Employee Rights in English, and if applicable, in the employee's first language.  New employees must receive this written notice from their employer when they begin employment, and existing employees must receive it by November 29, 2018.  Employers must also post this notice in a conspicuous and accessible place at all work sites, and provide copies to employees upon request.  A copy of the notice can be printed by clicking here:  Notice of Employee Rights

Minimum Wage Increase

New Jersey's minumum wage will increase from $12 and hour to $13 an hour for most employers starting January 1st 2022.

More information can be found on the NJ Department of Labor website at:  NJ Department of Labor.

Sales and Use Tax Rate Change

The New Jersey Sales and Use Tax rate will decrease to 6.625% starting January 1, 2018.  Please prepare to update your records accordingly.

More information is available on the NJ Division of Taxation website at:  Notice of NJ Sales and Use Tax rate change.

NJ Income Tax Exemption for Veterans

New for Tax Year 2017.  You are eligible for a $3,000 exemption on your Income Tax return if you are a military veteran who was honorable discharged or released under honorable circumstances from active duty in the Armed Forces of the United States by the last day of the tax year.  Your spouse (or civil union partner) is also eligible for an exemption if he/she is a veteran who was honorable discharged or release under honorable circumstances and you are filing a joint return.  This exemption is in addition to any other exemption you are entitled to claim and is abailable on both the resident and nonresident returns.  You cannot clamin this exemption for a domestic partner or for your dependents.

Providing Documentation.  You must provide a copy of Form DD-214, Certificate of Release or Discharge from Active Duty, the first time you claim the exemption.  This form does not need to be provided each year.  The United States National Archives and Records Administration can assist with obtaining a copy of your DD-214.