This bill amends the local payroll tax law in New Jersey to enhance the administration of employer payroll taxes. It introduces a requirement for certain employers to provide additional information to the municipality regarding their payroll, as requested, to assist in tax administration. Additionally, the bill stipulates that if an out-of-State municipality or entity imposes a payroll tax on a New Jersey resident employee, the local payroll tax will not apply to that employee. Employers must submit documentation regarding the employee's residency status and the out-of-State tax to the municipality before the local tax obligation is waived.

Furthermore, the bill clarifies that no employer will be obligated to report and pay payroll taxes to more than one municipality for services performed by an employee. In cases of disputes regarding tax liability across multiple municipalities, all involved municipalities must be joined in a tax court proceeding. These amendments aim to streamline the payroll tax process and prevent double taxation for employees working across state lines.

Statutes affected:
Introduced: 40:48C-16, 40:48C-18