New Jersey Special Employment Situations
Independent Contractors - Whenever services are performed for remuneration (including commissions, bonuses, and cash value of compensation in kind), the question of whether such services are considered performed by an independent subcontractor or a covered employee is determined by application of the three-test of N.J.A.S. 43:21-19(i)(1)(A), (B) and (C) of the New Jersey unemployment compensation law.
Multiple State Employment - When an employee performs services for the same employer in New Jersey and in some other state(s), the question of whether that employee is covered by the New Jersey Unemployment compensation Law is determined by the tests of N.J.A.S. 43:21-19(i)(2)(A) and (B).
The Application of these tests will result in the reporting to one state of the employee's total wages in all states. The tests are to be applied to the employee, not the employer, in the following order: (A) localization of service; (B) base of operations; (C) place of direction and control; (D) residence of employee.
