Understanding the various codes and abbreviations on wage documents is important for employees to accurately interpret their paychecks and tax forms. One such abbreviation is NJWD-ES, which may leave individuals puzzled about its significance.
This article explores the purpose of NJWD-ES on wage documents and its implications for state withholding and personal tax liability.
Purpose on Wage Documents
The abbreviation NJWD-ES on wage documents generally refers to New Jersey Workforce Development, and employers often use it as shorthand to label the employee contribution that helps fund the state’s Workforce Development/Supplemental Workforce Funds (sometimes shown with UI as UI/WF/SWF). For 2025, the worker contribution rate to the Workforce Development/Supplemental Workforce Funds is 0.0425% (0.000425) of taxable wages, and the 2025 taxable wage base for UI and WF/SWF is $43,300. ([nj.gov](https://www.nj.gov/labor/ea/employer-services/rate-info?utm_source=openai))
The presence of NJWD-ES (or similar wording) on wage documents helps employees see required state payroll deductions that support New Jersey workforce programs. This transparency helps employees better understand deductions from their gross wages and the resulting net pay.
Relationship to State Withholding
NJWD-ES reflects an employee payroll contribution that is separate from New Jersey Gross Income Tax withholding. In practice, employers withhold Gross Income Tax and, independently, withhold and remit required employee contributions for programs such as Unemployment Insurance, Disability Insurance, Family Leave Insurance, and Workforce Development/Supplemental Workforce Funds.
How It Is Reported on Tax Forms
Employers typically show these state payroll contributions on employee pay stubs. On the Form W-2, New Jersey employment contributions are often listed in Box 14 (for example, as “UI/WF/SWF,” “DI,” and “FLI”), but the exact label can vary by payroll system.
Employers must file quarterly reports and payments for wages and contributions. For New Jersey, the Employer’s Quarterly Report (NJ‑927) and the Employer Report of Wages Paid (WR‑30) are due by the 30th day of the month after the quarter ends (April 30, July 30, October 30, and January 30). ([nj.gov](https://www.nj.gov/labor/ea/employer-services/rate-info?utm_source=openai))
If an employer files the NJ‑927 late, penalties accrue at $10 per day for the first five days and then $10 per day or 25% of the contributions due (whichever is less). Interest on unpaid contributions accrues at 1.25% per month until paid. ([nj.gov](https://www.nj.gov/labor/ea/bill-notice/interest-penalties?utm_source=openai))
Separately, employers must file New Jersey’s annual reconciliation of Gross Income Tax withheld (Form NJ‑W‑3) by February 15 for the prior calendar year. ([nj.gov](https://www.nj.gov/treasury/taxation/njit34.shtml?utm_source=openai))
Variations in Employer Reporting
Employer reporting of these contributions can vary based on company size, industry, and payroll systems. Larger companies often rely on payroll software that automates New Jersey reporting, while smaller employers may use simpler tools or manual processes.
Payroll providers that support New Jersey compliance typically track rate changes and deadlines automatically, which can reduce reporting errors and notices.
Connection to Personal Tax Liability
Understanding NJWD-ES on wage documents helps employees reconcile their New Jersey returns. If you worked for more than one employer and your combined employee contributions for UI/WF/SWF exceeded the annual maximum, New Jersey allows a credit for the excess on your state return (claimed on Form NJ‑2450). ([nj.gov](https://www.nj.gov/treasury/taxation/njit16.shtml?utm_source=openai))
Employees should review Form W‑2 carefully and confirm that New Jersey employment contributions look reasonable for the year’s wages. If something seems off, ask your employer’s payroll team to review the entries before you file your return.