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
If passed, SB 2637 will amend existing laws governing employer contributions to the unemployment compensation fund. Specifically, it mandates that the contribution rates for fiscal years 2022, 2023, and 2024 will be based on an adjusted lower rate from previous columns in the contribution rate table. This change is aimed at mitigating the financial impact on employers who have been struggling due to economic disruptions caused by the pandemic. It will effectively stabilize the employer contribution rates and alleviate some immediate financial pressures on businesses.
Summary
Senate Bill 2637, introduced on February 8, 2024, aims to address the funding of New Jersey's unemployment compensation fund by allocating $2.5 billion from federal assistance provided under the American Rescue Plan Act of 2021. The bill intends to use these funds to replenish the state's unemployment compensation fund, which has faced financial strain, particularly during the COVID-19 pandemic's state of emergency. Additionally, the measure seeks to prevent any increases in employer unemployment taxes that could arise from benefits paid during this public health crisis.
Contention
The proposed legislation has generated debate among legislators and stakeholders concerning its potential long-term effects. Supporters argue that the bill is necessary to provide immediate relief to both unemployed workers and struggling businesses who have faced unprecedented challenges. They contend that maintaining lower contribution rates will help small businesses recover and preserve jobs. However, critics express concerns over the long-term implications for the unemployment fund's sustainability, questioning whether offsetting contributions could lead to future deficits and fiscal instability in the state’s unemployment programs.
Carry Over
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.