Question 1

Is PEO registration required in New Jersey?

Accepted Answer

Yes. Employee leasing companies and PEOs must register with the Commissioner of Labor under the Employee Leasing Company Act (P.L. 2001, c.260, N.J.S.A. 34:8-67 et seq.). Registration is separate from, and in addition to, registering as an employer. An out-of-state PEO can obtain a limited registration when licensed in another state with no New Jersey office, no direct solicitation, and no more than 50 covered employees in the state.

Question 2

When must a PEO register in New Jersey?

Accepted Answer

Initial registration must be requested within 30 days of the first day of co-employment and completed within 30 to 60 days. The annual registration form is due by January 31 of each calendar year, filed with the Division of Employer Accounts using the PEO-1 (initial) and PEO-A (annual) forms.

Question 3

What financial requirements do PEOs face in New Jersey?

Accepted Answer

Under N.J.A.C. 12:16-24.4, a PEO must file a financial statement showing positive working capital. Where that cannot be shown, the PEO must provide a bond, irrevocable letter of credit, or securities equal to the amount needed to achieve positive working capital plus up to $100,000, set case-by-case by the Commissioner.

Question 4

What is the SUI taxable wage base in New Jersey?

Accepted Answer

New Jersey's UI taxable wage base is $44,800 for the rate year July 1, 2026 through June 30, 2027. The new employer UI rate is 2.6825%, with Family Leave Insurance and Temporary Disability Insurance surcharges of 0.6% and 0.5% respectively.

Question 5

What is the minimum wage in New Jersey?

Accepted Answer

New Jersey's minimum wage rises to $15.92 per hour for most employees on January 1, 2026, CPI-adjusted under Article 1, Paragraph 23 of the state constitution. Reduced rates apply for seasonal and small employers ($15.23), agricultural employees ($14.20), tipped workers ($6.05 cash wage), and long-term care direct care staff ($18.92).

Question 6

How does workers' compensation work with a PEO in New Jersey?

Accepted Answer

Workers' compensation is a pure private-carrier market. The department counts more than 400 licensed insurance companies authorized to sell comp policies in New Jersey, with no state fund.

New Jersey PEO FAQs: Registration, Compliance, and Costs

Frequently Asked Questions