N.J. Admin. Code § 18:35-4.2

Current through Register Vol. 56, No. 11, June 3, 2024

Section 18:35-4.2 - Credit for excess contributions

(a) Credit for excess amounts deducted and withheld as worker contributions for unemployment insurance, disability insurance, family leave insurance, Workforce Development Partnership Fund, and Health Care Subsidy Fund shall be treated as follows:

1. Employers issuing a W-2 form to employees shall include on it:

i. The amount of New Jersey unemployment insurance contributions withheld;

ii. The amount withheld for New Jersey disability benefits fund contributions or for a private plan;

iii. The amount of New Jersey family leave insurance contributions withheld;

iv. The combined total amount withheld for Workforce Development Partnership Fund and Health Care Subsidy Fund contributions or, in the alternative, the separate amounts contributed to these funds;

v. The New Jersey unemployment number; and

vi. The New Jersey private plan number, if any.

(b) The latter two numbers referred to in (a)1v and vi above are assigned by the New Jersey Division of Unemployment and Temporary Disability Insurance in the Department of Labor and Workforce Development.

(c) An individual claiming a credit against gross income tax for overpayment of unemployment insurance, disability insurance, family leave insurance, Workforce Development Partnership Fund, or Health Care Subsidy Fund contributions shall claim such credit by including with his New Jersey 1040 or New Jersey 1040-NR a completed New Jersey Form 2450. A claim not received within two years after the end of the calendar year in which the contributions were deducted is void.

Example 1: During the calendar year, A, who is divorced, worked for two employers in New Jersey. The first withheld the maximum of $ 44.00 for unemployment insurance contributions and $ 44.00 disability benefits fund contributions from A's salary, as required by law. The second employer withheld $ 30.00 from A's wages as contributions to each fund for the total of $ 60.00. A files his or her gross income tax return and pays the tax on February 14 of the subsequent calendar year but fails to make claim for the $ 60.00 excess contributions withheld during the previous calendar year or qualifying alimony payments made in that year.

In December two years after the unemployment contributions and disability benefits fund contributions were made, A files an amended gross income tax return containing New Jersey 2450 for the calendar year two years prior claiming a credit for excess contributions withheld and claiming the alimony deduction that the taxpayer had originally omitted from the return covering the calendar year two years prior. The claim is timely filed with respect to both the contributions withheld and the alimony deduction.

Example 2: Same facts as above, except A files an amended return on January 5 more than two years after the end of the original calendar year when the unemployment contributions and disability benefits fund contributions were made. The claim for contributions withheld is too late since it was filed after the expiration of the two-year period for refund. The claim for refund based upon alimony deductions, however, is timely because the claim was filed within three years from the time the return was filed or two years from the time the tax was paid, whichever was later.

(d) Claims for gross income credit for excess contributions made by an employee are subject to the provisions of 54A:9-8.1 and N.J.A.C. 18:35-10.

N.J. Admin. Code § 18:35-4.2

Amended by 48 N.J.R. 295(a), effective 2/16/2016