What to Know About New Jersey Assessment Notices

New Jersey employers: Have you received your annual assessment notice this year?

Each year the New Jersey Department of Labor distributes assessment notices to New Jersey Employers to supplement fund programs that are not covered by contributions from payroll taxes.

Do not be alarmed when receiving this notice. It is not a penalty of any type, however you do need to pay it as quickly as possible to avoid any penalties and interest that could be imposed.

In all there are seven different assessments. A brief description of each assessment that you could be billed for is below:

The State Plan 4F Deficit Assessment:

This assessment is to pay unemployed people who are disabled. It is calculated by taking the total taxable disability wages reported multiplied by the assessed percentage. This percentage is derived from the benefit program’s deficit (if there is one) divided by the total taxable disability wages of all employers.

The Private Plan 4F Deficit Assessment:

This assessment is the same as the above except it only applies to employers that have an approved private disability plan.

The State Plan Experience Rating Assessment:

This assessment is to pay for the State Plan Disability program to gather data for employers to pay into the fund in relation to their experience rating.

The Private Plan Administrative Cost Assessment:

This assessment goes to the Department of Labor and Workforce Development to cover costs to approve Private Disability Plans. Employers who are self-insured will be the only ones to receive this assessment. If the Private Disability plan is through an insurance company, they will be billed for it.

The Catastrophic Illness Fund Assessment:

This assessment is to help families who have children with illnesses with high medical expenses. This is assessed to all New Jersey employers. The rate is $1.50/employee.

The Right to Know Assessment:

This assessment goes toward the costs of collecting data regarding hazardous substances used, manufactured, stored and released by New Jersey businesses. This assessment is only imposed on employers in certain industries.

The Pollution Prevention Fund Assessment:

Businesses in certain industries, the same as the ones for the right to know fund, have to submit formal plans to the DEP to reduce their use of hazardous substances. This funds the administration of the DEP.

Not all New Jersey employers or companies are subject to all of the above assessments. Because of this,  the total assessment fee can vary based on the number of assessments included in the notice. Also, some of the assessments are based off of total wages reported for that year or the number of employees.

Contact your Alloy Silverstein CPA or Abacus Payroll Specialist if you need assistance or would like more information.

Author: Marissa Bradley