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Summary of differences between federal and state regulations
Coverage
The definition of employer in New Jersey provides a minimum period of time or payroll of $1000 in a year.
Workers are considered employees unless:
- The worker is free from control or direction in the performance of the work under the contract of service and in fact;
- The service is performed either outside the usual course of the business for which it is performed or is performed outside of all places of business of the enterprise for which it is performed; and
- The individual is customarily engaged in an independent trade, occupation, profession, or business.
Exclusions from the definition of employment include:
- Insurance agents on commission, and
- Real estate agents on commission.
The following student employment is excluded from coverage:
- Student nurses and interns in employ of a hospital, and
- Students working for schools.
An amendment to the FUTA, effective with respect to services performed after 1961, permits states to cover federal instrumentalities which are neither wholly nor partially owned by the United States, nor exempt from the FUTA tax by virtue of any other provision of law which specifically refers to such section of the Code in granting such exemptions. All states except New Jersey have provisions in their laws that permit the coverage of service performed for such wholly privately owned federal instrumentalities.
New Jersey rules regarding coverage of officers of corporations excludes corporate officers and individuals with at least 5% ownership of employing business.
State coverage is required for services performed for religious, charitable, or educational nonprofit organizations. Although coverage is required only for those organizations employing four or more workers in 20 weeks, a number of states have provisions that cover smaller nonprofit organizations as well. This state has expanded coverage provisions beyond federal requirements.
Federal
Contact
U.S. Department of Labor, Employment and Training Administration
(https://workforcesecurity.doleta.gov/unemploy/uitaxtopic.asp)
Regulations
20 CFR chapter V