FAQ – New Jersey Paycheck Calculator (2025)
Answers to the most common questions about federal & NJ withholding, payroll programs, bonuses, overtime, W-4 forms, and accuracy for 2025 paychecks.
Federal Tax & W-4 Questions
1. How does the calculator handle federal tax withholding?
We use IRS Publication 15-T (2025) percentage method tables for per-paycheck withholding, reflecting W-4 filing status, dependents, and extra withholding.
2. What W-4 information do I need for accuracy?
Filing status, dependents, multiple jobs checkbox, and any extra withholding amounts from Steps 2–4 of the W-4 affect federal withholding calculations.
3. Does the calculator account for federal standard deduction?
Yes, the standard deduction is built into the IRS tables: $15,000 (Single), $30,000 (MFJ), and $22,500 (HoH) for 2025.
New Jersey State Tax Questions
4. How does NJ state income tax withholding work?
We use NJ Division of Taxation’s per-pay-period percentage tables for your filing status and pay frequency.
5. Are local taxes withheld in NJ?
No. NJ does not have local city/county income taxes like some states (e.g., PA, OH).
6. Can I adjust NJ withholding separately?
Yes, employees can request additional NJ withholding using the NJ-W4 form.
UI • WF • TDI • FLI Program Questions
7. What are UI, WF, TDI, and FLI deductions?
State payroll programs: UI (Unemployment), WF (Workforce Dev), TDI (Disability), FLI (Family Leave) with specific 2025 wage bases and rates.
8. When do NJ payroll program deductions stop?
UI/WF stop at $43,300 YTD; TDI/FLI stop at $165,400 YTD for 2025.
9. Are employers required to match these contributions?
UI employer rates differ; WF/TDI/FLI employee rates are separate and capped by law.
Overtime & Bonus Questions
10. How does the calculator handle overtime pay?
Overtime hours × hourly rate × multiplier (1.5× or 2×) are added to gross pay; same tax rules as regular pay apply.
11. How are bonuses taxed?
Employers use either the IRS percentage method (22% federal) or aggregate method; NJ state tax applies normally.
12. Do supplemental wages affect my tax bracket?
Not directly; withholding on bonuses may look high but final tax owed is based on total annual income.
Wage Caps & YTD Questions
13. Why does my net pay change mid-year?
When YTD wages hit OASDI ($176,100) or NJ caps ($43,300 UI/WF; $165,400 TDI/FLI), those deductions stop.
14. Does the calculator handle mid-year starts?
Yes, entering YTD wages ensures accurate cap tracking for remaining pay periods.
15. Are wage bases updated annually?
Yes, SSA and NJ DOL update them each year; we update the calculator accordingly.
Other Questions
16. How accurate are results?
We use official IRS & NJ data; final withholding may vary due to employer payroll timing or deductions not entered.
17. Can I print or share results?
Yes, results can be printed or downloaded as PDF for records.
18. Does NJ have a separate disability tax?
Yes, TDI is a separate payroll tax capped at $165,400 wages for 2025.
19. Do I need to file anything to stop these deductions?
No, deductions stop automatically once YTD wages reach the cap.
20. Where can I find official tax tables?
IRS Publication 15-T, NJ Division of Taxation, SSA, and NJ DOL websites publish all official rates and tables.