ASSEMBLY LABOR COMMITTEE
STATEMENT TO
ASSEMBLY, No. 4043
with committee amendments
STATE OF NEW JERSEY
DATED: MARCH 11, 2024
The Assembly Labor Committee adopts amendments to Assembly
Bill No. 4043.
As amended, this bill requires that a portion of what would have
been the worker contribution to the unemployment compensation
trust fund instead be collected and deposited directly into the
unemployment compensation administration fund. Under current
law, workers who are either employed by nongovernmental
employers, including non-profit employers, or who are employed by
governmental employers that elect or are required to pay
contributions, contribute 0.3825 percent of their wages to the
unemployment compensation trust fund. The bill reduces this
worker contribution to the unemployment compensation trust fund
to 0.3625 percent of wages and requires that 0.0200 percent of
wages be collected and deposited directly into the unemployment
compensation administration fund.
Under current law, workers who are employed by the State of
New Jersey or any other governmental entity or instrumentality that
elects or is required to make payments in lieu of contributions,
contribute 0.0825 percent of their wages to the unemployment
compensation trust fund. As amended, the bill reduces this worker
contribution to the unemployment compensation trust fund to
0.0625 percent of wages and requires that 0.0200 percent of wages
be collected and deposited directly into the unemployment
compensation administration fund. The bill’s redirection of funds is
less than the amount that is not committed to separate trust funds of
self-insured employers, so the amount that goes to the separate
funds, and consequently employer contributions, will not be
affected by the bill’s provisions.
The unemployment compensation trust fund provides the
funding for unemployment benefits for workers. While the
unemployment compensation trust fund is adequately funded, the
unemployment compensation administration fund does not have
adequate funding to maintain efficient operations of the
unemployment compensation system.
The unemployment compensation administration fund is funded
by contributions from the federal government, but these 2
contributions do not provide sufficient resources to maintain the
State system. This redirection of contributions from the
unemployment compensation trust fund to unemployment
compensation administration fund will provide needed resources to
the unemployment compensation administration fund.
COMMITTEE AMENDMENTS :
The committee amended the bill to include governmental
employers in the redirection of contributions from the unemployment
compensation trust fund to the unemployment compensation
administration fund.