State Form NJ W-3

Employer’s Annual Reconciliation of Gross Income Tax Withheld

The NJ W-3, “Employer’s Annual Reconciliation of Gross Income Tax Withheld”, is used by employers in the state of New Jersey. Here are the primary reasons for needing to file a NJ W-3:  

Annual Reconciliation 

The NJ W-3 serves as the annual reconciliation form for employers to report the total state income tax they have withheld from their employees’ wages to the New Jersey Division of Taxation. This form allows the state to reconcile the total amounts reported throughout the year with the total amounts withheld as reported on individual employee W-2s. 

Compliance with State Tax Laws 

As an employer, it’s your legal obligation to report and remit state income tax withholdings to the state. Filing the NJ W-3 is part of fulfilling this obligation under New Jersey’s tax laws. 

Submission of Wage Statements 

When you file the NJ W-3, you’re generally also required to submit copies of the W-2 forms for all employees from whom New Jersey income tax was withheld. The NJ W-3 then serves as a summary of all the withholding amounts reported on those individual W-2 forms. 

Verification 

The New Jersey Division of Taxation uses the information on the W-3 and the associated wage statements to verify the withholding amounts when individuals file their state income tax returns. 

It’s essential to file the NJ W-3 to remain in compliance with state’s tax laws and regulations when you’ve made payments that require information returns and have had New Jersey income tax withheld. Not filing or late filing can lead to penalties and interest charges.