N.J. Admin. Code § 18:7-8.14 - Definition of officers and employees

(a) Those officers and employees whose wages, salaries, and other personal service compensation are required to be included in the computation of the payroll fraction of the business allocation factor include every individual, officer, and general executive officer whose relationship with the taxpayer is that of employee and employer.

(b) Generally, the relationship of employer and employee exists when the taxpayer has the right to control and direct the individual not only as to the result to be accomplished by him or her but also as to the means by which such result is to be accomplished. If the relationship of employer and employee exists, the designation or description of the relationship, and the measure, method, or designation of the compensation, are immaterial.

(c) Compensation paid to officers, such as the Chairman, President, Vice-President, Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, Comptroller, and any other officer charged with and performing general executive duties of the corporation must also be included.

(d) A director of a corporation is not an employee; therefor compensation paid to directors for acting as such should not be included in either the numerator or denominator in computing the payroll fraction.

Notes

N.J. Admin. Code § 18:7-8.14

Amended by 49 N.J.R. 1694(a), effective 6/19/2017