Payroll News

New Jersey Adjusts Interest Rate, Effective April 1

June 29, 2020, 2:00 PM

New Jersey’s interest rate for tax underpayments is 6.25% from April 1 to Dec. 31, 2020, down from the 7.75% rate in effect for the first quarter of 2020, the state taxation division said June 23 in a notice.

While New Jersey’s interest rate generally takes effect Jan. 1 each year using the average prime rate reported by the Federal Reserve on Dec. 1 of the previous year, it can be adjusted during the year if the reported prime rate changes by more than one percentage point, the division said.

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