N.J. Admin. Code § 17:6-5.4
Each employer shall pick up employee contributions with respect to all base salary paid after the effective date with respect to enrolled participants. The employee contributions so picked up shall be treated as employer contributions pursuant to IRC § 414(h)(2). The employer shall pay the picked-up contributions directly to the Plan Administrator, instead of paying such amounts to the participants, and such contributions shall be paid from the same funds that are used in paying salaries to participants. Such contributions, although designated as employee contributions, shall be paid by the employer in lieu of contributions by participants. Participants may not elect to receive such contributions directly instead of having them paid by the employer to the Retirement Plan. Employee contributions so picked up shall be treated for all purposes of the Retirement Plan and State law, other than Federal tax law, in the same manner as employer contributions made without a pick-up.
N.J. Admin. Code § 17:6-5.4