We’re reaching out to inform you of a recent change for the New Jersey state disability insurance employee (NJSDIEE) withholding rate. As of January 1, 2025, the rate was adjusted to 0.23%; however, due to a configuration in your UKG Pro^® solution, the updated rate was not applied to your employee deductions for 2025.

Next steps

UKG has adjusted your rate in the UKG Pro solution to reflect the correct rate of 0.23%, effective retroactively from January 1, 2025. Beginning with payrolls processed on or after Friday, May 23, any employees subject to NJSDIEE will begin to see this amount withheld from their paychecks.

Important! To ease the burden on your organization, UKG will make an exception and reimburse you directly for the NJSDIEE withholding you paid on behalf of your employees. We’ll be in touch with more details on how we’ll provide this reimbursement.

If you would like to correct historical payroll records to reflect the contributions paid on behalf of your employees, please review the steps in the How to Correct Employee Tax Amounts article. This step is optional.

Note: Quarterly agency payments remain unaffected as first quarter liabilities were reconciled using the correct rate and submitted on time to the agency.

For more details on first quarter 2025 reporting, refer to your Q1 Company Package in the UKG Pro solution under Menu > Administration > Reporting > Completed Reports. You can also review the original Release Note for more information on this tax rate change.

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