STATE – New Jersey businesses will face an average annual payroll tax increase of about $130 per employee to help restore the state’s insolvent unemployment insurance trust fund.
Members of the state Senate and Assembly approved Gov. Chris Christie’s amended version of a bill to stave off a larger unemployment tax increase earlier this week. Without the bill’s passage, businesses would have had to pay an average increase of $400 per employee starting July 1 under an existing state law.
“Businesses now have predictability in their planning,” said Michael Egenton, a lobbyist for the New Jersey Chamber of Commerce who was pleased with the bill’s passage. “They know what to expect now as far as bills they are going to get, and they can plan accordingly, in terms of the operation of the business.”
The amended bill makes it more difficult for workers who are fired for misconduct to receive unemployment benefits, and will in some cases bar them from collecting.
New Jersey’s unemployment insurance trust fund is more than a billion dollars in debt because previous administrations repeatedly took money from it for other purposes.
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