State of New Jersey Department of the Treasury Division of Revenue REVENUE CONSOLIDATION Visit us on Christine Todd Whitman

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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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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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 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 ResponsibilitiesTaxation Responsibilities

Tax Policy

Tax Interpretation

Tax Enforcement

Customer Service Inquiries

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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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Joint Responsibilities Joint Responsibilities

Forms Design

Telefiling

Internet Filing

Edit Maintenance

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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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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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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 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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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Questions and AnswersQuestions and Answers

[email protected]

609-292-1404

www.state.nj.us/treasury/revenue

Documents

State of New Jersey Department of the Treasury Division of Revenue REVENUE CONSOLIDATION Visit us on Christine Todd Whitman