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Legislative Updates

Legislation Advances to Offset UI Tax Increases on Employers

Legislative Updates Taxation

On June 13, the Assembly Appropriations Committee considered A-3683/A-2152 (Freiman/Greenwald/Chaparro/Dancer), which if passed would stop the pending Unemployment Insurance (UI) tax increases on businesses. Hilary Chebra, Manager of Government Affairs for the CCSNJ was proud to testify in strong support of this bill on behalf of the CCSNJ’s 1,100 member companies.

In October of last year, employers of all sizes were levied a $252 million increase in UI taxes due to historic unemployment levels caused by the pandemic. This tax increase is set to continue in two more installments that total approximately $1 billion over the next two years unless state government steps in to providing funding to offset these increases.

A-3683/A-2152 (Freiman/Greenwald/Chaparro/Dancer) would do just that by paying off a $1 billion federal loan that state took out once New Jersey’s unemployment benefits ran out, as well as provide a corporation business tax (CBT) and gross income tax credit to small businesses to help offset UI tax increases. The legislation was also amended in Committee to add certain hospitality businesses to the tax credit program outlined in the bill.

In her testimony, Ms. Chebra praised the Legislature’s action on this critical issue to the business community. She stated that if this bill is not passed and signed into law, businesses that were forced to close their doors through no fault of their own will be hit with tax increases they simply cannot sustain as they continue to recover from the pandemic. She also strongly supported the Committee amendments explaining that many hospitality businesses, specifically shore seasonal businesses, continue to struggle to regain their footing and that this legislation, as amended, will provide them much needed support.

A-3683/A-2152 (Freiman/Greenwald/Chaparro/Dancer) passed the Assembly Appropriations Committee unanimously and is now scheduled for a vote by the full Assembly on Thursday, June 16.

To read the CCSNJ full written testimony, click here. 

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Hilary Chebra

Manager, Government Affairs, CCSNJ

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