TRENTON – Legislation to limit the increase in New Jersey’s employers’ unemployment tax liabilty was approved 37-0 Thursday by the Senate. The bill (A-3819) was approved 76-0 by the Assembly on May 9. It now goes to the governor.
The bill helps solidify the Unemployment Insurance Fund and reduces the mandated unemployment insurance tax rates that will be imposed on employers during fiscal years 2012 and 2013. Employers’ tax liability would be cut from $300 per worker to $100 per employee on average, generating a savings of $450 million for New Jersey businesses.
The legislation implements recommendations made by the Governor’s UI Task Force and is supported by groups such as the New Jersey AFL-CIO, the New Jersey Business & Industry Association and the New Jersey Chamber of Commerce.
The bill would mainly:
- Reduce the unemployment insurance (UI) tax rates that would be imposed on employers during fiscal years 2012 and 2013; and
- Modify, for all years after FY 2011, the UI trust fund reserve ratios which set employer UI tax rates in such a manner that larger reserves are required in the UI trust fund than under the current law before employer UI taxes are reduced.
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