New Tips for Employers in New Jersey

Federal Tax Credits

Tips for EmployersThe Work Opportunity Tax Credit allows employers that hire members of targeted groups who face employment barriers to claim a credit against income tax for a percentage of first-year wages. In a recent News Release, the IRS reminds employers there are now ten categories of eligible workers: qualified IV-A Temporary Assistance for Needy Families recipients; unemployed veterans, including disabled veterans; ex-felons; designated community residents living in Empowerment Zones or Rural Renewal Counties; vocational rehabilitation referrals; summer youth employees living in Empowerment Zones; food stamp (SNAP) recipients; Supplemental Security Income recipients; long-term family assistance recipients; and qualified long-term unemployment recipients. Before claiming the credit, employers must first request certification on Form 8850 within 28 days after the eligible worker begins. Though generally ineligible for the credit, tax-exempt organizations can claim the WOTC for hiring qualified veterans. For more information, go to

New Jersey Requires Paid Sick Pay

On May 2, 2018 Gov. Phil Murphy signed into law the New Jersey Earned Sick and Safe Days Act. The act, which will take effect Oct. 30, 2018, allows workers to take time off from their jobs and receive pay for up to five days a year, earning one hour of paid sick time for every 30 hours worked. Workers will start to earn paid sick days on the effective date of the law. Workers can carry-over no more than five earned sick days from year to year.

By Terri L. Marakos, CPA