New Jersey Assembly Bill A4077

New Jersey 2022-2023 Regular Session

• Introduced: 5/26/22
• Refer: 5/26/22

Caption

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.

Impact

The bill modifies existing laws concerning employer contributions to the unemployment fund, particularly for the fiscal years of 2023 and 2024. Under the new provisions, the contribution rates will remain consistent at the levels established by column 'C' of the experience rating table, overriding prior regulations that would otherwise increase these rates based on the fund's reserve status. This change is aimed at reducing the financial burden on employers during a critical recovery phase and preventing fluctuations in contribution rates that could hinder business operations.

Summary

Assembly Bill A4077 aims to allocate federal government assistance and state funds to the unemployment compensation fund in New Jersey, addressing the fiscal challenges posed during and after the pandemic. Its primary focus is on ensuring the solvency of the unemployment compensation fund while simultaneously suspending certain increases in employer taxes for the period specified in the bill. By doing so, it seeks to maintain stability for businesses while they recover from economic disruptions caused by the public health crisis.

Contention

Notably, there are points of contention surrounding A4077, particularly related to the suspension of employer tax increases. Critics argue that maintaining lower tax rates for employers may limit the fund's capacity to effectively address future unemployment challenges, especially if unforeseen economic downturns occur. Additionally, the requirement for annual reporting on the fund's solvency may not sufficiently address the long-term needs of Illinois' unemployment system, leading to debates on the adequacy of the measures taken under this bill.