The New Jersey Department of Labor (“NJ DOL”) has begun mailing the New Jersey State Unemployment Insurance (“SUI”) and Disability Insurance (“TDI”) annual Rate Notices to all employers. Upon receipt, a copy of this Notice should be provided to your payroll service provider.
These Rate Notices cover the fiscal year July 1, 2018 through June 30, 2019. The assigned rates help determine the state payroll tax cost that each employer must pay, in addition to several Federal employer taxes.
Recognizing that the typical business owner and their accounting personnel have enough to do already, we can review the Rate Notice to ensure that it is correct. Our experience with these Notices has proven that some of these are routinely incorrect, and errors can result in a significant cost to the employer. 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 the rate to be over-stated.
Additionally, the NJ DOL allows employers to make a Voluntary Contribution, which enables them to reduce their SUI rate. We have found that many times a modest payment can put an employer in a lower “rate bracket”. Another way of looking at it: The NJ DOL offers employers the opportunity to “buy down” the rate if it is economical to do so. However, this must be done within 30 days of the mailing date of the Rate Notice.
In summary, employers should consider an analysis of their Rate Notice to determine if any savings can be realized.
As payroll taxes can be a significant cost for most employers, we feel that this is an important area that should be addressed, and we can help you by reviewing your rate assignment. Please contact us to discuss this, or any other issue.
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Meet Our Team
Dino Rizzo, CPA, MST-Managing Director
Dino M. Rizzo, CPA, MST is a Managing Director at Gramkow Carnevale Seifert & Co., LLC and specializes in providing accounting, tax and management advisory services to a broad industry of clients in real estate, wholesale distribution, retail, professional services, manufacturing, construction and software development. Dino focuses on providing service to closely held privately owned businesses.
Dino brings many years of diversified accounting and tax expertise to the firm including Big 4 and local firm experience. He is the firm’s director of audit and accounting and Chairman of the firm’s Assurance Committee.
Dino is an active member of the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. Dino is also a member of committees on Accounting and Auditing and Information Technology of CPA Associates International, a leading association of independent public accounting firms.
Dino has a BS degree in Business Administration from Montclair State University and a MS degree in Taxation from Seton Hall University. Dino also is a peer review team captain and performs peer reviews for the AICPA.