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.
Impact
The bill modifies current unemployment law provisions regarding employer contributions. It specifically halts the scheduled rate increases associated with the benefits paid to workers who were unemployed during the pandemic. By allocating federal funds, A2440 essentially protects employers from higher taxes that would have resulted from a diminished fund balance, thereby providing financial relief during a challenging economic climate. These changes would affect employer tax liabilities for the next three fiscal years (2022-2024), allowing for more predictable financial planning for businesses as they navigate post-pandemic recovery.
Summary
Assembly Bill A2440 allocates $2.5 billion in federal assistance from the American Rescue Plan to bolster the unemployment compensation fund in New Jersey. The legislation aims to prevent significant increases in unemployment taxes for employers, which were set to rise due to benefits paid out during the state of emergency caused by the COVID-19 pandemic. This financial infusion is intended to stabilize the fund and repay federal unemployment insurance loans prior to the due interest payment date, ensuring that the fund remains solvent during this recovery period.
Contention
There could be potential points of contention regarding the bill, particularly surrounding its use of federal funds and the long-term implications of halting tax increases on businesses. Critics may argue that while the bill provides immediate relief, it could lead to larger deficits in the unemployment fund in the future, should the economic recovery falter and jobless claims rise again. Additionally, discussions may arise around how the allocation of funds impacts other potential state budget needs or programs that rely on financial resources, raising concerns about prioritization during the recovery phase.
Same As
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 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.
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.
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.
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.
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.
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 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.
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.