NJ deductions for GA resident

[ywak9]

My NJ-based employer withheld NJ FLI, SDI, and UI/HC/WF. I have lived in GA for the last 20 years (never in NJ, no plans to move) -- I'm a remote employee from the start. Is there any way to recoup this money? It sure adds up, and as a GA resident paying GA taxes - I'm not even eligible for these services. My employer insists they are correct in making these deductions; is there any recourse?

[ErnieS0]

You would have to get any FLI, SDI and UI/HC/WF back from your employer. You can only get a refund on your tax return for those items if you paid more than your share because two or more employers withheld more premiums than the annual limit.

[ywak9]

Have been with employer for 2 years now; their legal team tells them they need to charge me these fees and they refuse to refund :(

[ywak9]

Is there any legal document I can point my employer to, or cite, to support the claim that they should not be charging me these deductions as a fulltime legal GA resident? That may help me get the money back - after 2 years it's not so small an amount! Much appreciative of any insights - I haven't been able to find anything online.

[DaveF1006 · Accepted solution]

When you prepare your state returns, prepare your NJ non-resident return first. You will receive credit in your Georgia state return for the taxes that you paid in your New Jersey. return. At least, you will receive a refund from the State of New Jersey whereas you may owe to the State of Georgia.

As far as a reference to give you, I found this NJ-Withholding link that mentions for non-resident employees, You are required to withhold New Jersey Income Tax from all compensation paid no matter where earned, unless you use the calculation below to determine the percentage of income earned in New Jersey or maintain current records to determine the exact amount of compensation earned from New Jersey source. This is mentioned on pages 8-9 on the form along with the percentage formula that employers should use to determine how much to withhold, if anything.

Show your employer the link because according the the percentage formula that follows and if the numerator that says days worked in New Jersey is zero, then there should be no wages to withhold taxes from.

@ywak9

[ywak9]

Thank you!! I already filed GA state taxes - should I still file nonresident for NJ? I thought I needed a NJ W2 to do that. 

[DMarkM1 · Accepted solution]

It depends.  On your W2 from the company was there a line on your W2 with box 15 "NJ" and boxes 16 and 17 in that NJ line showing income and income taxes withheld by NJ.  If not, there is no need to file a return as there was no income tax withheld.  I surmise there are no NJ items on your W2 or TurboTax would have asked you to complete a NJ return originally.

The items you list as being withheld are insurance items (short-term disability, unemployment, Family Leave).  If for some reason you needed to use any of these and you had not paid into them you would not be eligible to receive any benefits.  That's why they are being withheld.  These items are not refundable.  

If however, you do have NJ boxes on your W2, then you would need to file a NJ non-resident return to claim the income tax withholding refund.  In TurboTax at sign in select the "Add a state" option to allow you to make changes.  In the "My Info" section scroll down to "Other state income" and "Edit" to answer "Yes" you earned money in another state and select "NJ".  

Next verify your W2 entries in the "Income" tab include the NJ boxes 15-17.  Finally select "State" in the left hand menu and then "Prepare State Returns"  and "Start" your NJ return. 

[ywak9 · Accepted solution]

You are actually correct. I asked a tax attorney (friend's husband) and he said the same. That these are not income taxes, they are benefits that I must pay into -- and I can't get them back. There are no NJ boxes - these amounts are under "Other"...I'm paying state taxes to GA (where UI is covered by employer) and NJ benefits (lucky me!). Thank you for confirming 🙂