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Did you receive a letter from the State of NJ about its ACH process?

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Effective February 1, 2018, the State of NJ is changing its official banking institution responsible for tax collection.  This includes unemployment, disability and family leave taxes.  The switch is from Wells Fargo Bank to Citi Bank.

This change required New Jersey to send out letters to any taxpayer registered as an ACH Credit remitter (whether or not they have made any payments using this method) notifying them of the new banking information. This has unintentionally led to a lot of confusion within the state.

Most taxpayers pay their taxes electronically through ACH Debit.  Which authorizes the State of NJ to electronically debit their bank accounts for the amount of taxes owed. You use this method when you pay by phone, through tax software programs, the state’s own website, and also payroll service providers. Additionally, taxpayers who pay using these electronic methods do not need to do anything in response to this notice.

ACH Credit is a method of making a payment to the state directly.  You would have needed to set this method up with your banking institution. Not every bank can, or will, originate payments in this format. There generally would have been set-up fees at the time the original request was made.  If you believe you pay your NJ taxes by ACH Credit, you need to give your financial institution the new routing and account number as provided by the State in their written communication. 

For more information please contact Glenn Taylor at 973-994-9494 or by email at glenn.taylor@SobelCoLLC.com.

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