N.J. Admin. Code § 18:7-8.13

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

Section 18:7-8.13 - Business allocation factor; payroll fraction

(a) Wages, salaries, and other compensation include all amounts paid for personal services rendered to the taxpayer, but do not include amounts paid of the taxpayer that do not have in them the element of compensation for personal services actually rendered or to be rendered.

(b) The percentage of the taxpayer's payroll allocable to New Jersey is determined by dividing the wages, salaries, and other personal service compensation of the taxpayer's employees within New Jersey during the period covered by the return by the total amount of compensation of all the taxpayer's employees during the period.

1. All executive salaries are includible in both the numerator, as applicable, and the denominator.

2. In general, a taxpayer reporting to the Division of Employer Accounts in the New Jersey Department of Labor and Workforce Development must allocate to New Jersey all wages, salaries, and other personal service compensation, and other items reportable to that Division in the amount prescribed by the New Jersey Department of Labor and Workforce Development.

(c) Wages, salaries, and other compensation are computed on the cash or accrual basis, in accordance with the method of accounting used by the taxpayer in reporting for Federal income tax purposes.

N.J. Admin. Code § 18:7-8.13

Amended by 49 N.J.R. 1694(a), effective 6/19/2017