The New Jersey State Legislature has passed a bill that would reduce the amount of unemployment insurance taxes employers owe and delay an increase in the unemployment trust fund reserve ratio to help businesses deal with the economic impact of the COVID-19 pandemic.
A. 4853, sponsored by Assembly Majority Leader Louis Greenwald (D) and other Democrats, passed the Senate November 16 on a vote of 39 to 0 after passing the Assembly October 29 on a vote of 72 to 0. The Senate also passed identical bill S. 3011, which was replaced by A. 4853. The bill heads next to Gov. Phil Murphy (D) for consideration.
A. 4853 would exclude the cost of unemployment benefits during the COVID-19 pandemic when calculating an employer’s reserve ratio for the purpose of determining the rate of the employer’s contributions to the unemployment trust fund.
The bill is expected to reduce the total amount of employer unemployment insurance taxes by at least $1.34 billion over three fiscal years, according to the bill’s fiscal note. As a result of the revenue reductions, the state is expected to rely on federal loans to be able to pay unemployment insurance benefits.
Meanwhile, the Senate passed bipartisan legislation (S. 446) that would allow counties to share tax administrators.
The bill, sponsored by Sen. Mike Doherty (R) and Senate President Steve Sweeney (D), passed the Senate November 16 on a 39-0 vote.
Doherty and Sweeney said the legislation would improve government efficiency and save taxpayer money.
“Inefficiencies at the county level are costing taxpayers their hard earned dollars,” Doherty said in a release. “We must seize every opportunity to encourage local governments to share services and bring these costs down. Allowing counties to share a tax administrator is a great start, and I look forward to seeing our communities reap the rewards of this commonsense change.”