What would the IRS flag about how you've been paying your nanny?

New Jersey takes care of its workers—your employee will have both disability coverage and paid family leave. There's a bit more to track here than in simpler states, but your employee gets some real benefits. We handle all the calculations so you don't have to worry about the details.

State unemployment insurance (SUI). New Jersey requires household employers to register and pay state unemployment tax once you cross the federal $1,000/quarter threshold (some states use a lower threshold — California is $750/quarter, New York and DC are $500/quarter). New-employer rate range in New Jersey: 0.5% - 5.7%. Missing the registration is one of the most common audit findings — the simulator flags it as soon as your quarterly wages cross the threshold.

State income tax withholding. New Jerseyhas state income tax, which means you may need to withhold from your nanny's paycheck (it depends on whether they elect withholding on the state W-4 equivalent). If they do, you owe quarterly remittance and an annual state W-2 reconciliation. The simulator flags missing withholding setup or unreported wages.

State disability insurance (SDI) and Paid Family Leave (PFL). New Jersey runs a state-administered SDI and PFL program that applies to household employees. These are typically funded by employee withholding (some states add an employer contribution) and require separate registration and remittance from FICA/FUTA. The simulator flags missing setup or under-withholding.

Minimum wage. The minimum wage in New Jersey is $15.49/hour. If you paid below this rate, the simulator surfaces it as a Department of Labor exposure — separate from tax findings, and often more expensive (back wages plus liquidated damages).

Run the audit above to see exactly which New Jersey rules apply to your situation — each finding comes with dollar exposure and a concrete next step.