Allocates sufficient funds to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.
Impact
The proposed legislation modifies existing unemployment tax laws by stipulating that the contribution rates for employers liable to pay into this fund shall not exceed certain specified rates despite fluctuations in the fund's reserve ratio. This is particularly relevant in ensuring that as employers face the economic impacts of the pandemic, they are not subjected to higher tax burdens that could arise from the fund's instability. Additionally, the bill mandates annual reports from the Commissioner of Labor and Workforce Development that will keep the legislature informed about the unemployment compensation fund's financial health.
Summary
Assembly Bill A2152, introduced in New Jersey on February 7, 2022, aims to stabilize the unemployment compensation fund by deploying federal assistance allocated under the American Rescue Plan Act of 2021. The bill specifies that sufficient funds are to be deposited annually into the unemployment fund to cover any federal unemployment insurance loan advances incurred by the state, particularly those from fiscal years 2022 through 2024. This measure seeks to protect both the fund's solvency and the financial burdens on employers, preventing potential tax increases related to these loans.
Contention
During discussions of A2152, notable points of contention revolved around the use of federal funds and the administration of employer taxes. Supporters argue that the bill is essential for economic recovery, providing necessary support to employers during challenging times while maintaining a robust unemployment fund. Opponents, however, might express concerns about the reliance on federal assistance impacting state fiscal responsibility and whether the provisions could lead to long-term implications for the state's budget and local economies.
Same As
Provides for transfers from General Fund to UI trust fund, reduces employer contributions to UI trust fund, assesses contributions from employers to repay transferred amounts, and provides tax credits to small businesses to offset UI tax increases.
Replaced by
Provides for transfers from General Fund to UI trust fund, reduces employer contributions to UI trust fund, assesses contributions from employers to repay transferred amounts, and provides tax credits to small businesses to offset UI tax increases.
Allocates $2.5 billion to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.
Allocates $2.5 billion to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.
Allocates $2.5 billion to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.
Allocates assistance to unemployment compensation fund from federal government and State funds, suspends certain increases in employer taxes, and adjusts wages for purpose of calculation of rate of employer contribution to fund.
Allocates assistance to unemployment compensation fund from federal government and State funds, suspends certain increases in employer taxes, and adjusts wages for purpose of calculation of rate of employer contribution to fund.
Prevents future tax increases based on revisions to employee unemployment tax wage base; allocates $100 million to unemployment compensation fund from federal government assistance.
Prevents future tax increases based on revisions to employee unemployment tax wage base; allocates $100 million to unemployment compensation fund from federal government assistance.
Excludes payments made for unemployment compensation benefits related to layoffs resulting from coronavirus disease 2019 pandemic from calculation of employer contribution for unemployment compensation benefits.
Excludes payments made for unemployment compensation benefits related to layoffs resulting from coronavirus disease 2019 pandemic from calculation of employer contribution for unemployment compensation benefits.
Provides for transfers from General Fund to UI trust fund, reduces employer contributions to UI trust fund, assesses contributions from employers to repay transferred amounts, and provides tax credits to small businesses to offset UI tax increases.
Allocates assistance to unemployment compensation fund from federal government and State funds, suspends certain increases in employer taxes, and adjusts wages for purpose of calculation of rate of employer contribution to fund.
Allocates assistance to unemployment compensation fund from federal government and State funds, suspends certain increases in employer taxes, and adjusts wages for purpose of calculation of rate of employer contribution to fund.
Prevents future tax increases based on revisions to employee unemployment tax wage base; allocates $100 million to unemployment compensation fund from federal government assistance.
Prevents future tax increases based on revisions to employee unemployment tax wage base; allocates $100 million to unemployment compensation fund from federal government assistance.