New Jersey Assembly Bill A2152

New Jersey 2022-2023 Regular Session

• Introduced: 2/7/22
• Refer: 2/7/22

Caption

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.