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State of New Jersey
Division of Revenue
Christine Todd Whitman
Governor
State of New Jersey
Department of the Treasury
Division of Revenue
REVENUE CONSOLIDATION
Roland M. Machold
State Treasurer
Visit us on www.state.nj.us/treasury/revenue
FTA Conference
June 7, 2000
History and Background
 Summer 1975
 Gross Income Tax Law was signed
 Effective January 1, 1976
 Folded into the Division of Taxation/ Department of the
Treasury
 Division of Taxation collected the gross income tax
withholdings
 Division of Employer Accounts/ Department of Labor
 Wage Requesting State
 Department of Labor collected the unemployment insurance
and disability insurance withholdings
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Division of Revenue
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History and Background
 Late 1970s
 Division of Taxation developed a wage reporting system
 Assist the State in the enforcement of gross income tax,
welfare and unemployment laws
 Early 1980
 NJ became a wage reporting unemployment State
 Wage Reporting function was transferred to the Division of
Employer Accounts/ Department of Labor
 Primarily to take advantage of federal funding
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History and Background
 1983 - 1984
 Division of Taxation implemented an integrated tax,
registration and accounts receivable system (TAXNET)
 1987 - 1995
 Department of Labor wanted to develop a new system to
maintain employer accounts
 OMB denied the request
 OMB recommended that it be consolidated with TAXNET
 Department of Labor disagreed with recommendation
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Phase I of Consolidation
 Executive Reorganization Plan 001-1997
 Issued January 14, 1997
 Effective March 15, 1997
 Created the Division of Revenue
 Processing and recollection activities
 the Division of Taxation including NJ-941
 other State agencies
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Taxation Responsibilities
 Tax Policy
 Tax Interpretation
 Tax Enforcement
 Customer Service Inquiries
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Revenue Responsibilities
 Data Collection and Posting to Taxpayer Accounts
 Maintaining Client Registration
 Processing Tax Forms and Checks
 Accounting and Reporting
 EFT and Credit Card Payments
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Joint Responsibilities
 Forms Design
 Telefiling
 Internet Filing
 Edit Maintenance
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Phase II of Consolidation
 Late 1997
 Department of Labor
 Needed Registration and Employer Tax Systems
 Employer numbering was running out of new numbers
 Still wanted a new employer system
 Governors Office/ Treasurer’s Office
 Wanted to create One-Stop Shopping for Business
 Wanted Department of Labor to transfer Employer
Accounts to Revenue
 All parties decided to compromise
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Phase II of Consolidation
 Department of Labor
 Department agreed to the following:
 consolidate the TAXNET and Department of Labor
registration files into a single revenue registration file
 adopt the FEIN as the new unique employer ID number
and to re-number all existing accounts
 combine the payment and return of tax and labor
withholdings
 Governors Office/ Treasurer’s Office agreed to
 a new employer accounting system for the Department of
Labor
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Phase II of Consolidation
 Executive Reorganization Plan 004-1998
 Issued March 30, 1998
 Effective May 29, 1998
 Created One-Stop Shopping for Business
 Bureau of Wage Reporting, Department of Labor
 Division of Commercial Recording, Secretary of State
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Primary Purpose
 Provide the business community with convenient,
seamless access to multiple State government
services
 Improve cooperative public/private relationship
 Business centered
 Common sense approach
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Provide a Single Doorway
 Employer registration
 Corporate tax return filing and contribution reporting
 Internet access for filings and payments
 Expanded Electronic Funds Transfer (EFT) program
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Former Structure
 Businesses filed with the Department of Labor, the
Secretary of State, and the Division of Taxation for the
following:
- initial registration
- quarterly filing
- annual reporting
- changing business status
 Total of 11 forms to 3 Departments
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New Structure
 Businesses now file with the Division of Revenue for
the following:
- initial registration
- quarterly filing
- annual reporting
- changing business status
 Total of 4 forms to 1 Department
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Benefits of Consolidation
 Elimination of redundant data
 Reduction of hardware systems and software package
 Provide a single source of inquiries to employers for
initial start-ups
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New NJ-927
 Combines the UC-27 and NJ-941
 Mailed quarterly
 Returned with one check to one address
 Preprinted rates for UI/DI
 Data from two forms on one card sized return
 Filing date for both is the 30th of the month after end
of quarter
 Expanded EFT available to UI/DI
 NJ-927 electronic filing
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Implementation Problems
 Combining two different registration files
 Designing consolidated returns with all information on
one duplex card size return
 Allocation of funds between two trust accounts
 Confidentiality problems with data
 Coordinate the submission of dates
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Implementation Problems - Continued
 Notifying the employer community
 Notifying CPA, tax preparer and payroll communities
 Working with software vendors
 Payroll companies did not want to lose float on UI
funds
 Different interest rates and penalties
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Common Problems NJ-927
 Failure to detach change form from NJ-927s
 More than one check with one return
 Mail sent to wrong address
 Division of Taxation paid weekly and monthly and
Department of Labor paid quarterly
 Use of old forms
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Common Problems NJ-927 - Continued
 Failure to detach check stub
 No additional documents should be enclosed
 Stapled or paper-clipped the check to the NJ-927s
 More than one return in an envelope
 Use of unauthorized computer generated returns
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WR-30
 Not much changed -- WR-30
 Mailed quarterly with NJ-927
 Returned to separate address
 UP to 99 employees preprinted
 Over 100 electronic filing (changing to 50 in 2001)
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Client Registration
 One registration file for Division of Taxation and
Department of Labor
 Based on FEIN
 UI/DI secondary number for old businesses
- new number is same as FEIN
 Mailing address is Department of Labor address
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Client Registration Packet
 One registration package (NJ-REG)
- Commercial Recording
- Division of Taxation
- Department of Labor
- New Hires Program
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What We Did Not Consolidate?
 The following were not consolidated:
 Enforcement or criminal prosecution effort
 Field audit
 Employer accounting systems
 Billings and delinquent filing notices
 Debt collections and penalty abatements
 Debt judgments and bankruptcy actions
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Summary
 Create a more business friendly environment
 Establish one doorway to New Jersey
 Reduce burdens placed on businesses
 Process information faster and more efficiently
 Public/Private Partnership
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Questions and Answers
 [email protected]
 609-292-1404
 www.state.nj.us/treasury/revenue
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