Newsletter June 2015

McLaughlin & Nardi, LLC June 2015

Trade Secrets in the Realm of Commercial and

Employee-‐ Employer Disputes

Newsletter

Payroll Withholding Tax Basics 1

Effects of Teachers Termination or

Early Resignation 3

New Jersey Pet Trusts 5

Payroll Withholding Tax Basics for Both Employers and Employees By Pauline M.K. Young Esq.

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Payroll Withholding Tax Basics for Both Employers and Employees Requirements regarding withholding payroll taxes are something that every business owner should be familiar with, particularly businesses which handle their own payroll internally (as opposed to outsourcing to a payroll company). Employers are almost always required to withhold taxes from employees' salaries, wages, and other compensation, such as commissions or bonuses.

While many people think of paying

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income taxes as what they do when they file tax returns by mid-‐April of each year, income taxes are actually considered a "pay as you go" tax. The tax returns at the end of the year then adjust the withholdings calculation depending on various other considerations such as deductions, marital status, and other income.

The employer withholds a certain amount of taxes from each paycheck, which the employer is then required to turnover to the government.

June 2015


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These forms help the employer determine how much should be withheld from an employee's paycheck. If the information on the W-‐4 changes, but the form is not updated so that the employer may adjust the withholding, that can cause a greater discrepancy at the end of the fiscal year.

For New Jersey withholdings, generally an employer can use the same W-‐4 form. However, in certain circumstances, such as if an employee has multiple jobs, that employee may file Form NJ-‐W4 to get a more accurate withholding. The New Jersey Division of Taxation has a useful table for both employers and employees to calculate their withholdings. However, an employee can always ask that an additional amount be deducted from each paycheck.

A New Jersey employer is required to withhold income taxes from compensation paid to all New Jersey resident employees. The New Jersey employer may also be required to withhold New Jersey income tax for nonresident employees if they physically work in New Jersey. (One exception is Pennsylvania residents who are from New Jersey withholdings when they fill out a and provide it to their employer.)

An employer must remit these taxes electronically to the State of New Jersey on a weekly, monthly, quarterly, or annual

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basis which can be made via e-‐check, credit card, or electronic transfer. The returns illustrating the amounts being withheld must be filed electronically as well on a monthly, quarterly, or annual basis.

An employer which withholds employees' income taxes is acting as a trustee on behalf of the State. Therefore, if an employer fails to remit the taxes that it was required to withhold, the business's owners, partners, or officers can be help personally liable for the failure to timely collect and/or remit the taxes. This is true regardless of whether the employer is a sole owner, corporation, or other business entity type. Generally, the penalty for failure to timely fill includes $100 per month penalty, plus five percent of the tax amount due each month. The penalty for late payment of taxes due is also five percent of the amount due, plus an annual interest rate of three percent. Each year that interest is compounded. Moreover, a collection fee of ten percent may also be added to the amount due. Thus, it is extremely important that employer's pay the correct amounts owed in a timely manner.

Pauline M.K. Young Esq. Associate

Pauline M.K. (Kohl) Young is an associate at McLaughlin & Nardi, LLC. Pauline brings a unique mix

of intelligence, discretion, diligence and street smarts to

our firm. Pauline handles a wide range of matters including

litigation, real estate, business formations and transactions,

employment law, and collections law. Pauline aids individuals and

businesses by providing personalized services to fit the unique needs of each client. successfully mediated several

employment cases.

To make an appointment with Pauline please contact:

(973) 890-‐0004 or [email protected]


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Effect of Teachers' Termination or Early Resignation

By Maurice W. McLaughlin Esq.

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Effect of Teachers' Termination or Early Resignation

Our employment attorneys represent New Jersey teachers and other public employees. One issue that commonly arises is the suspension or revocation of a teacher's license when she leaves without the required notice or is terminated for cause. Our attorney's experience is that both leaving early and termination for cause can have drastic and severe consequences when reported to the Department of Education. It may render the teacher unemployable.

Leaving Early: Normally a teacher is required to give 60 days notice before she quits. However, there are many times when a teacher may want to leave before the normally required 60 day notice. For instance, she may have had a better offer in another district or she may just need a break. The reasons are many. However, there could be potentially severe consequences which result from this decision. A teacher who leaves employment prior to the

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expiration of her employment, generally requiring at least 60 days notice if prior to the end of the academic year, is deemed guilty of misconduct, and the Commissioner may suspend her certificate for up to one year.

Termination: When an employee is faced with termination, she may choose not to avail herself of her remedies if the board of education allows her to resign rather than be fired. Local boards can use this as a tool to get rid of teachers they don't want but don't have grounds to validly fire because the consequences of termination for cause are so dire that the teacher may not want to chance it. This is grossly unfair by the boards, but it is a common tactic.

Revocation and Suspension: The New Jersey Department of Education's has the power to revoke or suspend a teacher's certificate because of demonstrated inefficiency, incapacity, conduct unbecoming a teacher or "other just cause." The


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phrase "other just cause," in turn, is defined to include offenses under the New Jersey's," which requires that a government employee's employment be terminated upon conviction of certain offenses. These offenses include crimes of dishonesty, crimes of the third degree or above, crimes touching on the certificate holder's office or when required by the Constitution. Other laws further define "just cause" to include endangering the welfare of a child or incompetent person; abuse, abandonment, cruelty and neglect of a child; resisting arrest; offenses involving the manufacture, transportation, sale, possession, distribution or habitual use of a controlled dangerous substance or drug paraphernalia; a crime involving the use of force or the threat of force to or upon a person or property including, but not limited to, robbery, aggravated assault, stalking, kidnapping, arson, manslaughter and murder; any crime of whatever degree relating to firearms, other dangerous weapons and instruments of crime; any crime of the third degree; any crime of the fourth degree where the victim was a minor; recklessly endangering another person; terroristic threats; criminal restraint; luring or enticing child into motor vehicle, structure or isolated area; causing or risking widespread injury or damage; criminal mischief; burglary; usury; threats and other improper influence; perjury and false swearing; resisting arrest; escape;

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bias intimidation; or conspiracy to commit any of these crimes.The Board of Examiners must provide the certificate holder with notice and the opportunity to be heard prior to suspension or revocation.

Certificates which have been revoked will not be reinstated. However, the holder may apply for a new certificate after four years, provided she meets the criteria, has evidence demonstrating rehabilitation, and if the revocation was for one of the crimes listed above and the candidate presents evidence that she has satisfied all conditions required in the disposition of the prior charges. New certificates may not be issued when a court has previously ordered forfeiture, the applicant barred teaching for any reason, or the applicant relinquished the certificate in lieu of an order to show cause for revocation.

Effect of Suspension or Revocation The effect of revocation or suspension may be that the employee is unemployable as a teaching staff member in any part of the country. Virtually all employment applications ask if the applying teacher's teaching certificate has ever been suspended or revoked. Answering "yes" is a red flag normally causing the teacher lose the job. On the other hand, answering "no" when the answer is really "yes" is grounds for automatic termination if the local hiring board of education were to discover it. This is why it is often so necessary to fight the revocation or suspension.

Maurice W. Mclaughlin Esq. Founding Member

Maurice W. McLaughlin is a founding member of McLaughlin & Nardi, LLC. He handles a wide

range of matters including complex negotiations, litigation and transactions. Maurice leads

the firm’s litigation practice. Maurice is admitted to the bars of New Jersey, New York, Massachusetts and the

United States Supreme Court. He has practiced in state, federal and administrative courts

throughout the Northeast.

To make an appointment with Maurice please contact:



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-‐ Ipsum

New Jersey Pet Trusts Ensure Your Pets Are Cared For During Their

Lives

Jennifer C. Meusel Esq.

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New Jersey Pet Trusts Ensure Your Pets Are Cared For During Their Lives

Many people feel that their pets are members of their family and want to make sure that their pets will be well cared for in the event of their death or incapacity. You must plan if you want to make sure that someone will care for your pet were you to pass away or become incapacitated, since that is not necessarily the case and people and normally under no obligation to do so. As a result, pets are often abandoned after their owners are no longer able to care for them.

In order to ensure that your beloved pets continue to be cared for, you can establish an "animal care trust," which will designate a caregiver, provide funding for your pet's care and appoint a trustee to fulfill the terms of the trust. New Jersey is one of forty-‐six states which have laws allowing for the creation of a pet trust. These trusts are gaining in popularity with pet owners who love their pets and want to guarantee that their pets are well cared for, and want to determine who will provide that care.

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New Jersey law, authorizes the creation of an animal care trust. The trust must be created specifically for the purpose of providing care for a domestic animal. It is only permitted to last for a period of 21 years, or the life of the pet (whichever is shorter). The trust must designate who shall be the caregiver of the pet in the event you are no longer able to provide such care. It must also designate a trustee who will be charged with carrying out the terms of the trust. The Trustee will ensure that the pet is delivered to the caregiver and will oversee disbursement of the funds in the trust for the purposes of caring for the pet. The trust should designate an alternate caregiver and an alternate trustee to serve if the primary caregiver and/or trustee are not able or willing to do so. The principal and income of the trust must only be used to provide care for the pet. The trust must also designate who will receive any funds remaining upon the trust's termination. The trustee's final duty under the trust shall be to transfer the unused trust property pursuant to the terms of the trust.

Jennifer C. Meusel Esq. Of Counsel

Jennifer Meusel is of counsel to the firm. Jennifer’s practice focuses on estate planning,

probate and estate administration, as well as

transactional work including commercial and residential real estate sales and leasing, business

formations and sales of businesses and business

assets. Jennifer takes pride in her commitment to providing individualized and personal attention to her clients.

To make an appointment with Jennifer please contact:



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Typically, an animal care trust will direct the trustee to utilize the principal and income of the trust as the trustee deems necessary for the care, maintenance and medical treatment of the pet. The caregiver must request funds from the trustee, and the trustee must decide if the funds should be paid out of the trust.

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Phone: (973) 890-‐0004

Fax: (973) 256-‐3641

Email: [email protected]

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Newsletter June 2015