Obtaining NJ SUI rate notices:
The New Jersey Department of Labor (“DOL”) will no longer be mailing a “hard copy” of the New Jersey State Unemployment Insurance (“SUI”) annual rate notice (“RN”) to the “business community”. Effective immediately, they must be retrieved online. Therefore, the RN’s that are usually mailed out to taxpayers in late July must be retrieved by you. Although the DOL states that they will be available in a few weeks, they have not provided a definitive date.
What are they?
These RN’s are for the fiscal payroll period July 1, 2012 through June 30, 2013 and directly impact the overall payroll taxes that you pay throughout the year. In addition to Social Security taxes, Medicare taxes, Federal Unemployment taxes and state disability taxes, these SUI liabilities round out your entire payroll tax burden.
What can we do for you?
Recognizing that the typical business owner and their personnel have enough to worry about, we have decided to retrieve the SUI RN as a service to you so that you can provide it to your payroll processing agent. Or, if you process your payroll internally, you will have this important document for your records.
In addition to just simply retrieving the SUI RN, we can also review it to ensure that it is correct. Our experience with these RN’s has proven that some of these are in fact INCORRECT. For example, a simple name change, entity-type conversion (i.e. a change from a corporation to an LLC), internal reorganization or just an error in the calculation can cause your rate to increase and in essence, increase your SUI tax burden (in other words, causing you to overpay the NJ Department of Labor).
Does a voluntary contribution make sense?
Additionally, the NJ Department of Labor allows a taxpayer to make a “VOLUNTARY CONTRIBUTION”, which enables you to reduce your rate. We have found that many times a modest payment can put your company in a different “tax bracket”. Another way of looking at it: The DOL allows you to “buy down” your rate if it is economical to do so.
This is just another reason why an analysis of your RN would make sense.
In summary, we feel that this is an important area that should be reviewed. Please contact us if you would like more information regarding this topic.