On January 4, 2021, Governor Murphy signed A-4853/S-3011 which will pause an automatic increase in employer unemployment taxes related to benefits paid during the COVID-19 pandemic state of emergency.
Unemployment insurance (UI) is made up of both employer and employee payroll taxes and should the overall UI experience rating rise due to a rise in unemployment claims, the employer contribution increases – amounting to a tax increase on employers. This legislation will exclude the cost of unemployment benefits paid to employees during the pandemic stopping the automatic tax increase from going into effect. The CCSNJ was proud to support this legislation as it moved through the legislature.
CCSNJ President and CEO Christina Renna made the following statement on the bill signing:
“The CCSNJ commends Governor Murphy for signing this vital piece of legislation. With most businesses having to temporarily close their doors to help slow the spread of COVID-19, employers were forced to make tough choices in order to survive. An additional increase to the employer contribution of the UI Fund would have been a tax increase businesses did not deserve and could not afford as the pandemic continues. Thank you to the Governor and Legislature for recognizing and taking swift action to assure employers were not faced with this difficult burden.”
Should you have any questions, please contact Hilary Chebra, Manager of Government Affairs at hchebra@chambersnj.com.
