Employment Taxes to be Withheld
I am a W-2 consultant who lives in New Jersey but is currently working in New York City. The employment agency originally withheld federal and New York taxes from my paycheck. The employment agency has changed payroll systems and now is deducting Federal taxes NY Withholding, and now NJ Unemployment, SWAF, HCSF and WDPF from my paycheck. Is this correct? I have no idea what SWAF, HCSF and WDPF stand for. I am concerned that if I have to file for unemployment or disability, I will be caught in a Catch-22 situation. The emplyment agency has not been able to give me an answer for now.
Can anyone give me some guidance? Thank you.
2 Answers from Attorneys
Re: Employment Taxes to be Withheld
If you were to become unemployed, you collect benefits in your state of residence (NJ), not the state of employment (NY). Thus, while you receive wages from NY employment, they contribute to the NJ unemployment fund. The initials are just descriptive of the contributions (unemployment and disability).
Re: Employment Taxes to be Withheld
SWAF (Supplamental Workforce)
HCSF (Health Care Subsidy)
WDPF (Workforce Development Partnership)
Since your employer has been withholding NJ UI from your checks, you will be eligible to file for NJ unemployment if you should lose your job (if you meet the other qualifying criteria).