NJ SUI/SDI

[Presterjohn1118]

I used to live in NJ but I have lived in NY for the entirety of 2020. My employer withheld 310.64 for NJ SUI/SDI for 2020. How can I get this amount back? 

[ErnieS0]

Contact your employer about getting a refund. New Jersey will over give a refund for excess excess UI/WF/SWF, Disability Insurance, and/or Family Leave Insurance Contributions as a result of working for more than one employer.

NJ says, "If the amount deducted by any one employer exceeds the maximum
for either UI/WF/SWF, disability insurance, or family leave insurance,
enter the maximum in the appropriate column(s) and contact that
employer for a refund of the balance of the deduction."

Related Resource:

• Form NJ-2450

[rjs]

Which state did you work in?

If you lived and worked in New York all year, the NJ SUI and SDI is a mistake. Ask your employer to refund the money to you and give you a corrected W-2.

If you worked in New Jersey you have to pay the SUI and SDI taxes, even though you live in New York. Your employer was correct to withhold the taxes, and you don't get it back.

[Presterjohn1118]

My company does not issue W2c for payment. They told me to get a refund by filing a nonresident tax for New Jersey. However, according to you, I am not allowed to do this?

[Presterjohn1118]

I have lived in New York for the entirety of 2020. Instead of giving me a W2c for a refund, my employer told me to get the refund by filing a non resident tax for NJ 

[ErnieS0]

There is no way to get a refund on a New Jersey income tax return. Form NJ-2450 is used to receive a refund for excess UI/WF/SWF, DI and FLI when the excess was caused by working for more than one employer.

The form says, "If the amount deducted by any one employer exceeds the maximum for either UI/WF/SWF, disability insurance, or family leave insurance, enter the maximum in the appropriate column(s) and contact that employer for a refund of the balance of the deduction."

The NJ withholding booklet says: "If you withhold more than the amount of tax requested, you should repay the difference to the employee. Reimbursement is a matter of settlement between you and your employee."

[rjs]

---

@Presterjohn1118 wrote:

I have lived in New York for the entirety of 2020.

---

@Presterjohn1118 

It doesn't matter where you lived. You still have not told us which state you WORKED in. If you worked in New Jersey you have to pay the SUI and SDI taxes. You don't get a refund.

$310.64 for combined SUI and SDI does not appear to be over the maximum amount, so you have no excess to be refunded.

Your W-2 is correct. There is nothing wrong. There is nothing to correct.

You have to file a New Jersey nonresident tax return because you worked in New Jersey. But you do not get a refund of the SUI/SDI tax. You do not get it back.

[Presterjohn1118]

I have lived and worked in New York all year

[rjs]

---

@Presterjohn1118 wrote:

I have lived and worked in New York all year

---

In that case withholding NJ SUI and NJ SDI was a mistake. I'm not sure what, if anything, you can do about it at this point.

If it was purely the employer's error they should correct it. But you might not want to push your employer too hard over a few hundred dollars. If you are in a union, you could ask your union representative if they can help you.

On the other hand, it's hard to make a case that it was purely the employer's error. If you failed to notify your employer that you had moved, then it's entirely your error. Even if you did notify them, you should have noticed the erroneous deductions on your paycheck stubs last January, and gotten it corrected then. So you still bear some responsibility for the error.

As far as I know, New Jersey does not have any procedure for getting a refund of erroneously withheld tax by filing a New Jersey tax return. I don't know of any New Jersey form for claiming a refund in such a case. Normally it would be the employer who makes the correction and refunds the money to the employee.

[ny1301]

so the conclusion is if excess NJ  DI anf FLI pay is because of

(1) personal or employer mistake: go to talk to employer

(2) multiple employer each taxed correct amount, but when added up, the tax exceeds max tax, should use NJ-2450, which I believe turbotax has already helped on that, but it does not say it clearly.

[LenaH]

Yes.

If you had only one employer, you must contact that employer for a refund.

If you had more than one employer, you can take credit on your New Jersey tax return for any excess unemployment insurance (UI)/workforce development partnership fund (WF)/supplemental workforce fund (SWF) contributions, disability insurance (DI) contributions, and/or family leave insurance (FLI) contributions withheld.

For 2021, the maximum employee contributions were:

• UI/WF/SWF — $153.85;
• DI — $649.54;
• FLI — $386.96.

This credit is taken on Form NJ-2450. This form is available in TurboTax and will populate automatically after you input your W-2s and have excess contributions withheld. 

@ny1301