As of January 1, 2023, employees working remotely from another state or commuting to NJ will pay NJ state taxes.
New Jersey adopted the Convenience of the Employer Test for nonresident employees who are residents of states that impose the test, (i.e, New York). The New Jersey law applies to nonresident employees who work outside of New Jersey for a New Jersey employer.Essentially, if the employee is working outside the state of NJ, either remotely or commutes in from another state, they will pay NJ state taxes. There is no formal exemption yet; there should be taxes in their home state and NJ unless a reciprocity agreement is already in place. For more information, click this link.