GARNISHMENT (TAX OFFSET PROGRAM)
The Department of Treasury has added the Department of Labor and Workforce Development (LWD) to the New Jersey Comprehensive Financial System (NJCFS) garnishment (tax offset) process for the inclusion of state vendors who have outstanding unemployment, disability, workforce, and family leave insurance contributions, interest, penalties and assessments.
State vendors who have not paid their unemployment, disability, workforce and/or family leave insurance contributions, interest, penalties or assessments by the prescribed payment due date may be included in the daily state vendor liability garnishment file that LWD now sends to NJCFS. Employers subject to garnishment must also pay a fine equal to 25% of contributions owed. (N.J.S.A. 43:21-14.4)
A state vendor who is unable to submit its full tax payment on or before the due date is directed to call the Employer Accounts Collection Section at (609) 633-6400, option 1, to make arrangements for payment of the liability in order not to be included in the NJCFS garnishment process.