State of New JerseyState of New JerseyDepartment of the TreasuryDepartment of the Treasury
Division of RevenueDivision of Revenue
REVENUE CONSOLIDATIONREVENUE CONSOLIDATION
Visit us on www.state.nj.us/treasury/revenueVisit us on www.state.nj.us/treasury/revenue
State of New JerseyState of New JerseyDepartment of the TreasuryDepartment of the Treasury
Division of RevenueDivision of Revenue
REVENUE CONSOLIDATIONREVENUE CONSOLIDATION
Visit us on www.state.nj.us/treasury/revenueVisit us on www.state.nj.us/treasury/revenue
Christine Todd WhitmanGovernor
Roland M. MacholdState Treasurer FTA Conference
June 7, 2000
State of New Jersey
Division of Revenue
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State of New JerseyDivision of Revenue
History and Background 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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State of New JerseyDivision of Revenue
History and Background 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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State of New JerseyDivision of Revenue
History and Background 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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State of New JerseyDivision of Revenue
Phase I of Consolidation 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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State of New JerseyDivision of Revenue
Taxation ResponsibilitiesTaxation Responsibilities
Tax Policy
Tax Interpretation
Tax Enforcement
Customer Service Inquiries
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State of New JerseyDivision of Revenue
Revenue Responsibilities 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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State of New JerseyDivision of Revenue
Joint Responsibilities Joint Responsibilities
Forms Design
Telefiling
Internet Filing
Edit Maintenance
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State of New JerseyDivision of Revenue
Phase II of ConsolidationPhase 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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State of New JerseyDivision of Revenue
Phase II of ConsolidationPhase 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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State of New JerseyDivision of Revenue
Phase II of ConsolidationPhase 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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State of New JerseyDivision of Revenue
Primary PurposePrimary 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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State of New JerseyDivision of Revenue
Provide a Single Doorway 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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State of New JerseyDivision of Revenue
Former Structure 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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State of New JerseyDivision of Revenue
New Structure 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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State of New JerseyDivision of Revenue
Benefits of ConsolidationBenefits 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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State of New JerseyDivision of Revenue
New NJ-927New 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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State of New JerseyDivision of Revenue
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State of New JerseyDivision of Revenue
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State of New JerseyDivision of Revenue
Implementation Problems 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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State of New JerseyDivision of Revenue
Implementation Problems - Continued 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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State of New JerseyDivision of Revenue
Common Problems NJ-927Common 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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State of New JerseyDivision of Revenue
Common Problems NJ-927 - ContinuedCommon 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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State of New JerseyDivision of Revenue
WR-30WR-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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State of New JerseyDivision of Revenue
Client RegistrationClient 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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State of New JerseyDivision of Revenue
Client Registration PacketClient Registration Packet
One registration package (NJ-REG)
- Commercial Recording
- Division of Taxation
- Department of Labor
- New Hires Program
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State of New JerseyDivision of Revenue
What We Did Not Consolidate? 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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State of New JerseyDivision of Revenue
SummarySummary
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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State of New JerseyDivision of Revenue
Questions and AnswersQuestions and Answers
609-292-1404
www.state.nj.us/treasury/revenue
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