Tax News

CCH (cch.taxgroup.com) reports:

  The New Jersey Division of Taxation has issued a notice and new gross (personal) income tax withholding tables to reflect the new income tax rates for all taxpayers with gross income over $400,000. The new withholding rates take effect October 1, 2009; however the withholding rates have been adjusted to take into account that the new tax rates apply for the entire 2009 tax year. All employers are required to withhold at the rate of 12% (the rate at which the withholding rate is capped) from salaries, wages, and other remuneration paid in excess of $400,000 during the remainder of 2009. This new rate takes effect immediately and must be instituted by all employers no later than October 1, 2009. On January 1, 2010, the withholding rate will revert back to the prior rate.

  Two sets of revised withholding tables for the percentage method of withholding are provided. One table is for October 1, 2009, through December 31, 2009, and the second table is for January 1, 2010, and thereafter.

  Subscribers can view the notice and new withholding tables. The percentage method computation rates in Tables A through E are for weekly, biweekly, semimonthly, monthly, daily or miscellaneous, and annual pay periods. Taxpayers who have pay frequencies other than those provided should divide the amount of tax to be withheld under the Annual Pay Period column for each rate table (but not the withholding percentage rate) by the number of pay periods in the year.

Notice , New Jersey Division of Taxation, July 15, 2009