The federal label of 'statutory employee' has no meaning for New Jersey tax purposes.īecause of these and other differences, you must take the amount of wages from the “State wages” box on your W-2s (Box 16). If you are considered a 'statutory employee' for federal tax purposes, you cannot deduct your business expenses unless you are self-employed or an independent contractor under New Jersey law.New Jersey does not allow you to deduct moving expenses or employee business expenses from wages, although you can exclude reimbursements for certain expenses if they are included in wages on your W-2.New Jersey does not allow you to exclude from wages amounts you contribute to deferred compensation and retirement plans, other than 401(k) Plans.The wages you report for federal tax purposes may be different than the wages you report for New Jersey purposes. You must report all payments, whether in cash, benefits, or property. Wages include salaries, tips, fees, commissions, bonuses, and any other payments you receive for services you perform as an employee. If you are a New Jersey resident, wages you receive from all employers are subject to New Jersey Income Tax.
