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New Jersey
Employee Obligations (Which Returns YOU Must File)
New Jersey has a Convenience of Employer rule, but it does not apply to Arizona residents. Standard rules apply: if you physically work in New Jersey, file a nonresident New Jersey return and claim the Form 309 credit on your Arizona return.
Employer Obligations (What Your Employer Must Withhold & Remit)
Register from day 1 for withholding, unemployment, TDI, FLI, and Workforce Development. Must withhold several employee deductions. NJ COE does NOT apply to Minnesota employees. Unemployment plus WDD ranges from 0.5% to 5.8% plus 0.1175% on the first $44,800. Employer TDI is 0.50%.
City & Local Income Taxes (Extra Filings Beyond the State Return)
Newark charges a 1% payroll tax; nonresidents get a 50% exemption (approximately 0.5% effective rate). This is the only New Jersey city with such a tax.
Other Paycheck Deductions (Disability, Paid Leave, Unemployment)
TDI plus FLI (0.23%) plus employee SUI contributions.
Remote Work Tax Risk — Convenience of Employer (COE) Rule
New Jersey has a reciprocal COE rule — it only applies to residents of Delaware, Nebraska, and New York. Since you live in Arizona, New Jersey's rule does NOT apply to you.
Related guides
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This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.